Best Ideas for Funding Your Dream Home Savings
Wouldn’t it be great if you could buy your New Jersey dream home in cash? Paying in cash is ideal, but we all know that not everyone has enough savings to buy a home without a loan.
If you want to know how to buy a home in 2022 by following an awesome savings plan, you’ve come to the right place.
Here are tips and tricks you can apply to save up for a downpayment on your new home.
How much do you need to buy your new home?
If you are one of those who still believe that you need a 20% down payment to buy a house, we have good news for you. Conventional loans offer as low as 3%, while a USDA loan provides a zero-down payment program for qualified borrowers.
Now that you know that the 20% downpayment requirement is a myth, you can now start saving to buy a home in New Jersey.
Budgeting is a good start
The first step in saving for a downpayment is to manage your cash flow and expenses. Now is the best time to start if you’ve never tried budgeting before. There are budget apps you can download to make things easier.
A budget shows you where your money goes monthly. Once you’ve determined your expenses, check how much goes to utilities and necessities. If you still have cash left, you can put it into your down payment savings fund.
If you discover that you don’t have enough money left over to set aside for your downpayment, cut back on your expenses and set aside a fixed amount for your downpayment monthly.
Ask for a raise
Have you ever considered asking for a raise if you feel you are performing well at work? Companies have different policies regarding salary increases, and it won’t hurt if you discuss this with your superior when the time is right.
Automate your savings
If you’re an impulse shopper, one trick you can do to curb the habit is to automate your savings for your downpayment. You can ask your bank manager to open a separate account and authorize an automatic withdrawal from your primary account to your new account.
Start a side hustle
With the rise of the “gig economy,” earning money on the side has never been easier. You can start looking for freelance work to get some extra cash you can move toward your downpayment.
It’s time you put your skills as a writer, photographer, artist, or musician from being a hobby to another income source.
The Bottom Line
Not having enough savings shouldn’t discourage you from becoming a homeowner. If you have a solid savings plan, you’ll be on your way to buying your dream home soon.
Check out first-time home loan programs with Cedar Wood Mortgage and get the best deals and terms in the market today.
If you’re ready to take the next step, our loan officers can help you get started. Call or send a message on our website today.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.