We all know how much of a financial burden purchasing a home can be for the common homebuyer; agents like Dean Graziosi see this all the time. Since the recent real estate crisis many lenders are now requiring that potential buyers have a bigger down payment now than in previous years. This has caused many homebuyers to put their dream of purchasing a home on hold until they can save enough money to qualify for a home loan. Dean Graziosi is going to offer you some helpful tips on ways in which you can begin saving for your down payment.
• Know How Much You Need To Save – The first thing that any potential homebuyer should be aware of is how much of a down payment they need to save. The best way to do this is to contact a real estate agent, such as Mr. Graziosi, who will listen to what you are looking for in a home and the area that you are interested in. Once they have this information, they will be able to give you an estimate of how big of a down payment you will need. In today’s market, the average down payment is between 3.5 percent and 20 percent of the purchase price of a home. This can vary depending on the lender you work with and the type of loan that you are interested in.
• Create A Budget – After you have met with an agent, you should now have a number in mind that you can use as a goal. With this number in mind, you should sit down and create a realistic budget that will help you put aside money for your down payment. When creating a budget you should carefully look at your spending habits. If you notice that you have been spending too much on luxury items such as eating out or attending shows, you may have to cut back on that type of spending to ensure that you are saving as much as possible.
• Become Motivated – In order to become committed to saving for a down payment, Mr. Graziosi states that you should use your potential dream home as a source of motivation. We all know how long it can take to save up enough of a down payment to purchase a home, many potential buyers may become discouraged and begin to lose hope; in this case you should remember what you are saving for. This will make it easier when you have to skip going to the latest hot spot for dinner.
• Extra Income – Many potential buyers are so determined to make their dream a reality that they find ways in which they can earn extra income. This is a great way for buyers to speed up the amount of time it will take to purchase their dream home. If you are determined to have a down payment in hand before a specific date, you may need to consider this step, says Mr. Graziosi.