Reach Your Down-Payment Goals

by Comfort Usukumah Team 05/05/2019

Saving enough funds for the down payment on your home can be an obstacle for everyone. With general living costs and accumulated debt (Student Loans!), many young couples and professionals don't believe they'll ever save enough to move from being renters to buyers. There are steps you can take to put aside the funds you need for your down payment, but you’ll need to consider your priorities and a serious commitment to your spending and saving strategy.

Take a look at the median house prices in the area you want to buy and set a realistic budget for the price of your new home based on your current income and means. If the average home price is around $275k, then with a standard loan you’ll need about $55,000 for your down payment.

First, open a separate savings account, or designate one of your accounts for the money you’ll put aside. If you can separate your funds from the checking and savings accounts you access on a regular basis, then you'll help yourself refrain from using your down payment savings for other purchases, maintenance, or emergencies that arise.

Second, analyze your spending habits and create a realistic budget based on your current income to help you make strategic spending cuts. There are many free apps, spreadsheet templates, and useful blogs to help you set up and manage your budget. Inquire with your local bank to learn if they offer financial advisory services or can set you up with a partner to help you review your budget—many credit unions provide these services free with membership. Check what your financial institution offers and take advantage of free wisdom!

  • Review your memberships and subscriptions. Can you consolidate your streaming services, cancel NFL channels after football season, or join a more affordable gym? 
  • Instead of going out to eat or to the movies for date-night, set a limited budget for entertainment and take a few extra minutes to discover the many free activities your city has to offer. While making these significant changes, it is essential to allow yourself to continue to have fun times and relieve some of the pressure you're adding to your life—finding more affordable activities and restaurants can help you spread the fun money a little further and still put significant funds aside for your down payment.
  • Curb your unnecessary purchases. For some, this is one of the most difficult changes to make. From little convenience store purchases to emotional retail shopping, you’ll have to monitor your habits to catch yourself before you make purchases you don’t need. If you need the energy drink every morning, take the time to stock up when they’re on sale. Find a coffee shop that offers deals or a punch card (at least!). And if you can’t cut all the retail shopping, try limiting yourself to resale stores or clearance outlets to curb spending. 

 There are many ways to save for your future home. Work with your real estate professional to determine what your loan and down payment requirements might be. Then, get started on your savings plan!

About the Author
Author

Comfort Usukumah Team

Comfort is a professionally qualified post-graduate trained and experienced Real Estate Broker who has been in the housing business since the eighties. She was a former Chief Executive of one of United Kingdom's Housing Group based in Central London. Comfort Usukumah holds a BSc. (Hons.) in Political and Administrative Studies. She is a corporate member of the United Kingdom's Chartered Institute of Housing ( MCIH); and a former Principal Officer of a Central London Local Government Authority. Comfort was appointed a member of the Barking, Brentwood and Havering Health Authority Board under the Premiership of Tony Blair. Comfort was also appointed the first Chairman of the London Borough of Havering's Race Equality Partnership. Comfort is a Certified Buyer Representative (CBR), Commercial & Investment Real Estate Certified (CIREC) and a professional Property Manager with a Post Graduate Diploma (PGDip.) in Housing from Middlesex University, Enfield, United Kingdom. Currently, Comfort is the President and CEO of Comfort Homes & Property Management LLC. CHPM is headquartered in the city of New Rochelle, NY, USA. She is a New York State Licensed Real Estate Broker, a member of the New York State Association of Realtors (NYSAR) and National Association of Realtors (NARS). Areas we cover include Westchester County, City of New York, State of Connecticut, Long Island, Rockland, Putnam, Bronx, Pennsylvania, and Georgia. Apart from the superior services and extraordinary results we provide to our property Buyer and Seller clients, we also specialize in relocation services, serving Ambassadors, Diplomats and Senior Corporate Executives from all parts of Africa, Europe and the rest of the world. We manage commercial buildings, rentals, and properties on behalf of Owners. Why don't you call Comfort today and experience the first class services yourself and in comfort?