How to Save for Your First Home: 5 Practical Tips

Hey there! Thinking about buying a home? Cody and I know how exciting, and a bit overwhelming, that can be. We've been in your shoes, and we're here to share some friendly advice on how to make that dream a reality. Let’s chat about some practical ways to save for the down payment of your home without stressing.

Tackle Debt Before You Save

Before you start stashing away cash for a down payment, it's a good idea to handle any lingering debt, especially those pesky high-interest credit cards. Paying off those balances can not only boost your credit score but also improve your chances of getting approved for a mortgage. Plus, it just feels good to knock out those debts!

Automate Your Savings

One of the easiest ways to save is to set up an automatic transfer from your checking account to a dedicated savings account for your down payment. Out of sight, out of mind! You’ll be amazed at how quickly it adds up when you’re not tempted to spend it.

Boost Your Savings with Raises

Got a raise at work? Instead of splurging on a new gadget or fancy dinners, why not increase your automatic savings transfer? Even small increases can make a big difference over time, getting you closer to that down payment goal.

Pretend You’re Already Paying a Mortgage

If your future mortgage is likely to be more than your current rent, start setting aside the difference now. It’s like a practice run for your budget and builds your savings faster. Plus, you’ll get a good sense of how comfortable you are with those future payments. If you are unsure what your future mortgage payment might look like, try out this simple Mortgage Calculator.

Save Your Windfalls

Whether it’s a tax refund, bonus at work, or even money from a side hustle, resist the urge to spend it and pop it into your down payment fund instead. These unexpected boosts can really speed up your savings.

Don’t Forget About First-Time Homebuyer Programs

As a first-time buyer, you might qualify for special programs that can lower your down payment requirements. We love strategizing about this with our clients. You’d be pleasantly surprised by how much you can save. 

Stay Focused and Track Your Progress

Set a target date and from there, calculate how much you need to save each month to hit your goal. Regularly check in on your progress because seeing those numbers grow is incredibly motivating.