7 Ways to Come Up With a Down-Payment for a House
Is the lack of down payment holding you back from purchasing a home? It doesn’t have to! Coming up with a down payment is faster and easier than you think. Read some helpful tips here, and call CityWorth Mortgage today to talk about your down-payment options!
Get a Gift From a Family Member
You can receive a gift of funds from a family member to help you make your down-payment! Asking parents for help to purchase a home is a common choice for many first-time homebuyers.
Set Up an Automatic Savings
The most efficient and fastest way to grow your down-payment is to make deposits into your savings regularly.
Consider saving the same amount from every paycheck. That way you know how much you'll have saved after 12 months, without including interest!
Save Your Tax Refund
Retailers know all too well the temptation that a generous tax refund holds, which is why you’ll see advertisements luring you to spend it with them during tax season. However, remember that even one regular tax refund might be all you need for a down-payment for a home.
Before you make other plans on how to spend your refund, set up a savings and remind yourself of your ultimate goal of purchasing a home.
Sell Items on eBay or Hold a Yard Sale
It's astounding the amount of money you can make on eBay - without it become a full-time job. Collections, clothing, and even furniture are popular items to sell on online with ease.
A yard sale is also a quick way to make hundreds of dollars, depending on what you have to sell. Clean out the garage, your closets, the attic, and the basement to find a variety of items others may be interested in owning.
If you haven't used it in a year or you don't consider the item an heirloom, it’s probably a good idea to let go of it. Another bonus of getting rid of excess items is that you’ll have less to move when you purchase your new home! Be sure you keep receipts of all sales.
Ask Your Employer for a Raise
If more than a year has passed from your last pay increase, it's reasonable to ask your boss for a raise. Remind your employer of the value to add to the company, and they'll likely reward your value with a raise.
Get a Second Job
A second job is easier than ever with side-gigs such as Uber, Lyft, and DoorDash. You can choose your hours and work as much or as little as you want. For something more reliable, consider a short-term position such as seasonal work during Christmas.
Dip Into Your Retirement Funds
Some retirement accounts allow you borrow for the purpose of buying a home. Ask your CPA for more information about borrowing from your retirement as some accounts will let you take out the principal balance without getting penalized.
Have more questions about purchasing a home? Call us today and we'll help create the best program for you and your needs!
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.