Saving for a Down Payment

by Del Fava | Parker 08/11/2019

When considering becoming a homeowner, one of the decisions you can make that will be beneficial to you is to deposit a down payment. However, the question is how do save up that hefty down payment?

One of the biggest roadblocks for prospective home buyers is securing a down payment. Fortunately, though, technology seems to be playing a huge factor in shrinking the burden of down payment. The whole saving process has become quite a bit less rigorous.

Below is a list of how you can overcome the down payment hurdle and ensure you have enough money when it’s time for you to buy.

Save A Fixed Amount Every Month

Saving a fixed amount is the simplest and most convenient way to save money. Open a savings account and discipline yourself to pay in a certain sum into the account every month. Discipline yourself not to use the money for any other purpose aside for your down payment.

Reduce Expenses

Save a lot more than you spend, review your expenses and cut down on items that are not necessary. Whatever money generated as a result of this should be added to your down payment account.

Skip Vacations for A Year

I know going for a vacation during the year is something you are looking forward to and you have it all planned out. However, if you are looking to save up enough money for your down payment, then you should consider scrapping out vacation until you have enough money for your down payment.

Reduce Your Debt

Having a credit card with a high interest rate can limit your ability to save. Pay off your interest debt starting with the highest; after that, you can close off that card while you proceed to pay off the next.

Borrow from Your Retirement Plan

You can ask human resources or your payroll officer if it’s possible to borrow against your savings to buy a home. Many profit sharing setups make provisions for employees to loan a certain amount from their retirement plan to become a homeowner.

Borrow from A Relative

When it comes to getting a home of your own, most family members and relatives would be willing to help; they can grant you loans without interest, gifts and other non-monetary items that will help you in your down payment quest.

Get Another Source of Income

Getting a second job would mean you would probably be working round the clock, but in the long run, it would pay off. Getting another job means another source of income and more money to save into your down payment accounting.

About the Author
Author

Del Fava | Parker

  

Doug was born and raised in Sonoma County with over 40 years in the real estate business; a well-connected, down-to-earth “people” person; devotes a great deal of time to working with both buyers and sellers in person.

Shannon has many years in business organization and administration; with over 15 years in the real estate industry; strength is in marketing properties and follow-up; devotes a great deal of time to the “behind the scenes” logistic work.

As a team we represent two strong elements of personal contact and business effectiveness. We have perfected aggressive networking and marketing systems which attract clients locally, nationally and throughout the world. These elements are expected by consumers in today’s fast-paced, high tech, and competitive marketplace.

We have successfully represented buyers and sellers of luxury estate, ranch, vineyards, investment, commercial and residential properties throughout Sonoma, Napa, and Marin counties for over forty years. We have invested time and money to establish a long-term position in the real estate industry; emphasizing an honest, hard-working, straightforward business approach. We have developed a system of working together that offers our clients comprehensive and personalized service along with negotiating techniques that consistently result in a win/win situation for everyone.

Consistently recognized as industry leaders, we passionately believe that contributing time and expertise to the community has enhanced their continued success and recognition as experts within the real estate community.

At W Real Estate, our clients and their goals are our first priority, without compromise. Whether buying or selling, our network is far reaching, and we ensure each and every client is completely satisfied. This is our commitment to you and our community.

We not only work here, we live and play here. We are proud of our community, and we know it like no other--the people, the locations, what sets them apart. And this is what sets us apart.

W Real Estate is Sonoma County's top real estate brokerage, year after year. Our agents consistently rank in the top 1% of all agents in Sonoma County, and sell properties at a higher value than our competitors. When you hire a W Real Estate agent, you hire a team of exceptional real estate professionals. Not only will you receive the best real estate advice and outcome with your chose agent, but you will also benefit from a full-time marketing expert, a dedicated listing manager to coordinate the logistics of prepping and showing your home, and a highly skilled transaction coordinator to manage the complicated paperwork, just to name a few. We're here for you - all of us.