Giving up is not an option. You’ve always wanted to purchase your own home. There’s just one problem — a big problem — you don’t have the down payment. Here’s how to save for a down payment on a home.

As a safe gauge, depending on your credit, plan to save 20% of the cost of the home. It’s not necessarily what the lender requires, but it’s a drawing card to the lender. They see you as the serious borrower you are.

Save for a Down Payment

Slash your rent. Could you move into a smaller rental? In either case, be prepared to make sacrifices if you want to save for a down payment. With a smaller home to live in, you’ll can save considerably towards your down payment. Please don’t write off this option as it’s very doable.

Move in with family or friends. Next, if you’re planning to save for a down payment, it’s wise to consider living with family or close friends for a short while. However, you need to understand the huge sacrifice they’re making. True, you’ll make sacrifices as well, but they’re making the biggest sacrifices. So, have a straightforward talk about how you plan to pitch in and how long you will be staying.

Look at your monthly expenses.  Furthermore, you can save a down payment by taking a good look at your budget. Many buyers are surprised at how much they can cut their budget when they get serious. Ideas include considering your insurance, utilities, and monthly subscription costs.

For instance, many today are “cutting the cable.” They’re finding that with services like Netflix, Hulu, and Amazon, they can cut their cable costs in half. In fact, many satellite companies are taking this trend seriously and offering competitive pricing packages.

Depending on your budget, it may take a little longer to save than you hoped for. However, don’t give up on your dream and buy a big luxury item instead. If you want to own your own home, stay focused.

Finally, when you’re ready to buy your home, get in touch with me. I’ll show you homes in the area and will be happy to set up a search for homes in the area that meets your criteria.