Whether you’re moving into a new home or you’re a first-time buyer, saving up for a down payment often requires planning. For some of us it can seem a little daunting, but it doesn’t have to be. Here are a few ideas future homebuyers in southern Maryland can use to simplify the process:

Know Your Loan Options

You may be under the impression that you’ll need 20% of the loan amount upfront for a down payment—that isn’t always the case. Do some research on your own or contact a local loan officer to learn more about all the options available to you. There are numerous programs that, if you qualify, will allow you to put down a much smaller down payment.

Examine Your Budget

What are your current monthly expenses? Which of those are truly necessities? What are your current spending habits, and where might you be able to cut back? Saving doesn’t need to feel like a punishment. It’s not about never spending any money; it’s about having a goal and doing whatever it takes to get there. Curbing simple things like dining out might feel restrictive, but as you see your savings grow as a result, you’ll soon see the rewards.

Explore a Secondary Income

It’s important to be realistic. If you’ve assessed your budget and determined that you don’t have as much left over as you’d like to add to savings, a secondary income might be a great option. Poke around online, you may find a work-from-home situation that you can take up on a part-time basis. You might have a small-business idea that you’ve been kicking around, and this may be just the motivation you need to get it started.  An additional income stream that you funnel directly into savings can really speed-up your saving process.

Form a Plan

Once you know your savings goal, it’s important to know how you’ll achieve it. How much would you like to save each month? And, how long at that pace will it take to reach your goal? Where would you like to be six months or a year from now? Formulating a clear plan—and sticking to it—can ensure you stay on track.

If you’d like to talk more about getting a plan in place, or if you’d like to see which loan options are available to you, I’m always happy to schedule a call.