What are some ways to save for a down payment on a house?
Here are 10 tips to go from dreaming about owning a house to getting the keys to your very own home.
1. Track Your Money
Do you know how much comes in and how much goes out each month?
Do you know where your money go each month?
Do you know how much do you spend on needs versus wants?
If not, it’s time to track your money! Making a monthly budget, whether it’s on a piece of paper, an electronic spreadsheet, or in an app, is an essential first step to saving money for big goals–like buying a house!
2. Find Places to Cut Back Spending
You want a house, right? Next, it’s time to consider what things you are willing to cut out for a time in order to save for your home down payment.
- DoorDash?
- Manicures?
- Coffeeshops?
- Sports subscriptions?
- Unnecessary apps?
- Eating out?
- Entertainment, like movies, shows, sports games, etc?
- Kids’ activities?
- Hobbies?
- Gym memberships?
- Alcohol?
Some things you can’t cut, but chances are, there are some things you can cut from your monthly spending to boost your down payment savings.
3. Find Ways to Increase Your Income
If you want to build your down payment savings even faster, find ways not only to cut your spending but also to increase your income.
To make more money, you can ask for a raise, sell items you no longer want, or start a part-time job. There’s no shame in side hustling to get that dream house!
- mow lawns, rake leaves, shovel driveways & sidewalks
- start an at-home bakery
- drive for Uber, Lyft, DoorDash, or Amazon
- provide childcare
- clean homes or offices
- pet sitting or dog walking
- house sitting
There are endless ways to serve others, fix problems, and earn more money. You can even find ways to earn money working from home!
4. Consider a Budget Coach
There are people so passionate about budgeting that they help people budget as a career! So if personal budgeting help is something you need to save for a down payment, consider reaching out to a budget coach.
John and Jeanine Farrar from Budgeting Today attended one of our weekly Shine team meetings and shared their passion for helping people reach their financial goals. On their website, you can find financial tips or request budget coaching.
5. Talk with a Mortgage Lender
Mortgage lenders are experts in mortgages. Their goal is to figure out each person’s financial goals and situation, then match them with the best mortgage option.
There are many ways to make buying a house more affordable, and finding a good mortgage lender can be a key step to save enough money for a down payment. You may even find a grant or loan program that doesn’t require a down payment (see an inspiring success story at the bottom of this article).
6. Create a Separate Savings Account
Setting aside a separate savings account for your home down payment is a simple yet helpful step. You can give your accounts nicknames like “First Home” or “Our Own Place.” Then you get to watch your savings for that exciting goal grow.
You also should be less tempted to spend that money since it’s in a separate account and not easily accessible.
7. Optimize Your Savings
If you’re not earning 3-4%, consider searching for savings, checking, or Certificate of Deposit (CD) accounts that can help your money grow faster by earning interest.
Choose a high-yield interest savings account. This type of account offers you higher interest rates than regular savings accounts, which can help your money grow even faster.
8. Ask for Money Instead of Gifts
Do you typically get gifts from relatives for Christmas or your birthday? Consider sharing your goal of saving for a house down payment and requesting a monetary gift to help you reach your goal.
9. Set Up Automatic Savings Transfers
Once you find room in your budget to save, set up an automatic monthly transfer to go from your checking to savings. This way you’ll add to your down payment savings account first–before it looks like you have extra money to spend in your checking account.
Saving for your down payment can become one of your regular ‘expenses’ in your monthly budget.
10. Explore Down Payment Assistant Programs
Here’s an example of a Shine Realty client who recently utilized several programs and received nearly $30,000 in grants to help secure the purchase of his new home.
“Congratulations to Angel and Leslie for closing on their new home! 
Angel and Leslie did everything right and then some! From start to finish, they were determined, patient, and ready to make their homeownership dreams come true. Angel was able to tap into two down payment assistance programs and here’s the magic part: the second program was originally all used up, but right after we got their offer accepted, one more package became available. Perfect timing! With nearly $30,000 in grants and 0-payment loans, they were set up for success. Meanwhile, life kept getting sweeter. Right in the middle of this journey, they welcomed their second baby girl into the world. Big shoutout to Rob, our lending superhero, for helping make the impossible feel possible. Congratulations to Angel, Leslie, and their two beautiful girls. Welcome home, and welcome to the magic of making a house your home! 
“
So buying a home may be more achievable than you think.
Reach out to our office by filling out the form below or contact any of our agents directly. We’d be happy to see how we can work together to make your goal of buying a home happen!