How to Save Money Faster to Buy a House

  • Kayla Ghassemi
  • 02/1/22
From the obvious to the things that you may have not considered,  we've rounded up the best ways HOW TO save for that home of your dreams.
 

Budgeting

The easiest way to prepare for a new home is to budget and funneling more money into that dream home fund. There are many different methods for budging out there, from the envelope system to hiding your credit card and eating ramen for months on end, but the best process is the one that works for you and your family. To prevent unnecessary stress while preparing to buy a home, focus on striking a balance between being conservative and still living an enjoyable life.
 

Downsize

Another option to save money for a move is to downsize your life. Downsizing can mean moving into a studio or your parent's house while you save the excess money to put toward a down payment. It could also mean selling furniture, clothes, tools, and other items you no longer need while bringing in extra money. And bonus: you're actively eliminating things you'll have to pack that you don't even need!
 

Minimize Extracurriculars

While we mentioned above that you are still worthy of quality life as you save for your future home, it may be worthwhile to cut down on extracurriculars where possible. Small changes will make a major difference over time. Limit unnecessary purchases like cocktails at dinner, take-out, and clothes so that you might funnel that money into your down payment or emergency fund.
 

Side Hustle

Everyone's favorite way to acquire extra money these days is a side hustle! Picking up a side hustle is one of the easiest ways to bring in cash if you cannot make spending changes in your day-to-day life. There are so many great options out there these days ranging in requirements. From extensive skills in the gig economy to ones that require none, there is something for everyone.
 

Lower Your DTI

Lowering your debt-to-income ratio isn't necessarily a budgeting technique, but it will make a world of difference in the homebuying process. If you didn't know, your DTI is the amount of debt you carry compared to how much you earn every year. Any money towards auto loans, school loans, or judgments against you contribute to your DTI.
 
With that being said, your DTI has a massive impact on your credit score. This number can impact how big of a mortgage loan you can qualify for, which affects your purchasing power while home shopping. Also, the number could affect a future credit line amount should you need remodels or have an emergency.
 

Final Thoughts

There you have it! We've provided an outline for the major home purchasing expenses you will need to save for and a roadmap of ways to do so. If purchasing a home is your ultimate goal, it doesn't have to be as scary as people make it seem. With a bit of knowledge and willpower, you're one step closer to the comfort and safety of your own space and building generational wealth!

Work With Kayla

Kayla takes the time to develop close relationships with her clients, understanding each persons’ unique needs individually and as a whole. She is committed to providing the highest level of service and best possible outcomes for her clients. She’s always striving to deliver creative, practical solutions for the real estate industry’s most vexing questions.

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