5 Tips to Save for a Down-Payment!
Are you thinking about buying a home at the Lake of the Ozarks but you're not sure how you will get the money for the down-payment? Taking out a mortgage is a big deal, and the bigger your down-payment is, the smaller your loan amount and monthly payment will be. So how will you save? Everyone comes up with creative ways to save money, but Your Favorite Real Estate Team has put together some tips for saving up for your Lake of the Ozarks real estate!
1) Automatic Money Transfers to SavingsOne of the most popular ways to save for a down-payment is to set up automatic direct deposits into your savings account. This is a very convenient way to save but it will be up to you to make the commitment to not spend that money on anything but your down-payment.
2) Get a Second JobHaving a second job is a great way to quickly build up your savings account. This probably won't be the most popular choice, but trust us when we say it will be worth it in the end when you are enjoying a cocktail or coffee on the deck of your new house on the Lake of the Ozarks! Just remember, the second job is designed to be temporary, and as soon as you have enough saved you can go back to just having one job.
3) Skip This Years Vacation
If you are accustomed to taking a yearly vacation, skipping a year can save a ton of money in the meantime! If you really need a getaway, even just condensing your vacation into a weekend getaway, this can save you a lot of money to put towards your down-payment.
4) Lower Your Monthly Expenses
Take a look at your monthly expenses and see if there is anything you could cut out. Consider cutting out your cable bill for a year. On average, cable costs $70, so in a years time, you could save $840! Another big expense is eating out. How often do you grab a quick lunch at a restaurant? Packing your lunch can save you a lot of money! Everyone's monthly expenses and habits are different. Take a look at your expenses and decide what you feel comfortable cutting out.
5) Sell Items You No Longer Use
With the rising popularity of Facebook groups and the marketplace, selling your unwanted items just got easier! Do you have furniture in your home that is not in use? Selling some unused furniture can help you make some extra cash and help to declutter your home at the same time! The possibilities are endless when it comes to selling your things. From clothing to lawn equipment, there is bound to be some items laying around that you could sell.
Keep in mind that saving does take time. You likely aren't going to have enough saved in the first few months. Typically, lenders want you to have a 20% down-payment. That can be a significant amount of money, especially if you are a first-time home buyer with no equity built up. Keep in mind that a 20% down-payment is not always required. There are loans you may qualify that don't require large down-payments such as a USDA or VA loan. Talk to your lender to discuss the options available to you. When you reach your savings goals, give Lake of the Ozarks best real estate team a call! We will help you celebrate your savings success and find the perfect Lake of the Ozarks property for you!
CONTACT ED SCHMIDT FOR ALL YOUR LAKE OF THE OZARKS REAL ESTATE NEEDS
Ed Schmidt, REALTOR
752 Bagnell Dam Blvd. Suite A
Lake Ozarks, Mo 65049
Phone: 866-224-1761 Ex. 706