3 Tips for Saving Up for a Down Payment in Centennial Colorado

As your trusted Centennial mortgage broker, Jeff is always looking for new ways to help clients get an advantage. Whether they’re buying a home for the first time or refinancing their mortgage, their time and money is important to him.

When it comes to buying a home, Jeff understands that it’s not always easy to come up with the required down payment amount. If you are interested in purchasing a home in the near future, it’s never a bad idea to save your money now.

To help with ways you can start saving your hard-earned money for that dream home, here are three tips that should be beneficial to you.

1. Look for cheaper alternatives

If you want to make a major purchase – like buying a house – the first thing you need to do is take a step back and evaluate how you are currently spending your money.

Get a piece of paper and make a list of all of the things that you currently spend money of each day, week and month. From there, start narrowing down the things that you can cut out and find a cheaper alternative for.

For example, if you do a lot of reading and are buying a new book every week, consider going to the library and borrowing books instead. If you go out for dinner with your family once a week then again with your friends twice a week, consider cooking a home-cooked meal for your friends/family instead.

Once you write down where your hard-earned money is going, you will quickly realize some of the things you can live without (or at least cut back on).

2. Start a Tax-Free Savings Account

This is a fantastic place to store your money and allow it to grow… tax-free! You will not have to pay income tax as this money grows. However, before you do this, it’s always a good idea to double-check with your mortgage lender to ensure it’s a good fit.

3. Consider Selling One of Your Cars

Obviously, this one only applies if you and/or your partner/family have more than one vehicle. If possible, consider getting rid of one of the cars – at least for now. This can save you thousands of dollars per year in insurance, gas, maintenance, and more.

If having two cars isn’t a necessity, substituting it for taking public transportation or walking is a great way to cut costs and save money.

Conclusion

Using these three tips, you should be in a better position for saving up for a down payment on your home. Whether it’s your first home or fifth home you’re saving up for, these methods will surely help.

If you have any questions about a down payment or Centennial mortgage, contact Jeffrey Beattie at Alliance Mortgage Group today for more information!


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