facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
%POST_TITLE% Thumbnail

Saving for a Down Payment

If you have decided that now is the right time in life for you to purchase a home, it's important to make sure you've saved enough for a down payment. Use these tips to help set your mind to the task and create a solid plan for how to get there.

Set Your Savings Goal

The first step is to figure out how much you will need for a down payment. In other words, determine how much you can really afford by getting pre-approved for a mortgage. Once you have done that, take a close look at the different mortgage options that are available in the market. The traditional amount for a down payment is 20%, meaning you will need to save 20% of the amount of home you can afford in addition to closing costs and other associated expenses. There are some options where you can put down a lower percentage, but you will likely be required to pay for mortgage insurance as a result. That isn't necessarily a bad way to go depending on your situation, but it is something to keep in mind.  

Focus on Your Budget

Once you have set a savings goal, you can start to work towards it. The first place to start is with your personal budget. You need to know how much you are making and spending each month so you can figure out how much you can save. You should take a long and hard look at your budget in order to identify the areas where you can cut back your spending. Once you have done this, you can really begin to lay out your savings plan for each month and determine when you will have enough to take the next step in the home buying process.  

Set Up Automatic Savings

Saving for a down payment can take some time. An easy way to stay focused on your goal is to make it automatic. If you automatically put your savings for the month in a separate account, then you do not run the risk of spending the money and getting off track. To do this, you can create a separate savings account or checking account and set up an automatic transfer of funds every time you get paid. If you think of it as paying yourself first, then you will likely not even miss the money. Transferring it as soon as it hits your bank account makes it easier to pretend it was never there and to continue saving.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Ascend Investment Partners is not a legal or tax advisor. You should consult with your attorney, accountant and/or estate planner before taking any action.    Ascend Investment Partners did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Ascend Investment Partners or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy   Services offered through Kesler, Norman & Wride, LLC dba Ascend Investment Partners, a Registered Investment Advisor. This message and any attachments contain information which may be confidential and/or privileged and is intended for use only by the addressee(s) named on this transmission. If you are not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are notified that any review, copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately by e-mail or by telephone and (ii) destroy all copies of this message.  If you do not wish to receive marketing emails from this sender, please send an email to garrett@ascendinvestment.com    Please note that trading instructions through email, fax or voicemail will not be taken. 

To Get Started Click Here

Sign Up for Email to stay in touch