Down payment tends to be the biggest barrier for young adults when planning to apply for mortgage. It takes some time to save up the money. It is not uncommon to postpone house buying decision just because down payment seems unreachable in a near future. However, there are steps you can take to speed up the process.
1. Family and friends
Inquire your nearest and dear friends and relatives that might help you with financial support.
2. Additional job
Make an additional income, for example, by doing some freelance work on a side or finding a job you can do on weekends.
3. Reprioritize expenditures
Reduce your expenses on things you can easily live without: bring your meals from home, if possible, stop attending gym and repeal traveling for a while.
4. Saving accounts
Move down payment funds from your non-interest checking account to an interest-bearing saving account.
5. Cash rewards credit cards
Pick a payment card that pays cash-back rewards.
6. Moving in with parents
Rent makes up to 2/3 of our monthly expenses. Moving back with parents for a while can be a great way how save considerable amount of money for your mortgage.
7. Previous home as investment
If you already own a property, money from your previous home selling activity can definitely be a great gain as a down payment.
8. Your local government
Do investigation on the Internet to find assistance programs for down payments or housing loans.
9. Arrange sale
You can easily get rid of things you haven’t used for years by selling them to commission shops or in auctions. Use online sites like ss.lv or eBay to sell items you don’t need.
10. Avoid the spending spree
Refrain from spending money on things you may not need. If you tend to succumb to unexpected buy, take a minute and evaluate your purchase. Do you really need it? Is it more valuable than your future house? This will discourage you from impulse purchases.