Saving Up For A Down Payment

If you’re in the market for a new home you should already know how important it is to have a solid down payment. Typically you will need to put down 20% of the home’s value for a bank to give you a home loan. This is much easier said than done. For a house costing $200k that’s a whopping $40,000 you need to have saved up.

Not only do you need to have the money in your bank account but you also need to have good credit and have good income as well. For most, the real problem isn’t having a good job or good credit, but having enough money for a solid down payment. But don’t despair, there are methods you can employ to get your bank account to go up quickly.

Sell Your Belongings

When you’re in need of money one quick way of getting some cash is to get rid of your stuff. So where can you sell your items? The first option will be eBay. You can sell everything from an old iPod to your car on eBay. For items like furniture or an old piano, you can use your local Craigslist page. Another option is to have a yard sale to get rid of cheap items like clothes you no longer wear. The last option is going to a pawn shop. You will not get much money here, but you can get rid of the stuff you couldn’t sell here and at least get something out of it.

Borrow From A Relative

You never really want to borrow money from family or friends. But there is one exception to this rule: when it’s for your first home. While it can be difficult to ask someone for money you may not have any other options available to you. Before you do ask for a loan, make sure you agree on a repayment plan and only borrow what you know you can afford to pay back on time.

Create A Savings Plan

To build up your savings account you need to create a plan and stick to it. Take money out of every single paycheck and place it into your savings account every two weeks. Start early and put away as much as you can. Make sure this account earns you interest but don’t put your money into a CD or any other long-term investment account because you’ll need that money soon.

Alice Porter is an avid writer who specialises in property management in Manchester is passionate about sharing her knowledge to first time buyers and new business owners.

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