Buying a new home is the American Dream, but figuring how to get the down payment together might seem more like a nightmare. Where will the money come from? For many it’s the old-fashioned way: saving up. Whether you want that vacation house in Orlando, have your eye on new homes for sale in Denver or want to upgrade into a bigger home in Atlanta, you’re going to need to make saving for a down payment a priority.
The crew at Taylor Morrison has a few ideas for how to save. Here are five tips to see your dream of a new home come true.
- Pay down your credit card debt.
Pay off your cards one at a time. Knock down the smallest debts first and apply the minimum payment amounts you were using towards paying off another card. When all of your cards are paid down you’ll have a good chunk of money to build a savings account.
- Save new income.
When you get a raise, put the extra income into your separate home buying savings account. Do the same with any additions to your income including bonuses and tax refunds. If you’re paid every two weeks, you get paid an extra week a couple of months every year—put that into savings, too.
- Sock your tax returns away.
Instead of spending your tax return cash on an expensive new gadget or something else you don’t really need, put it into savings.
- Adjust withholdings.
If you usually receive a sizable tax return, you are probably having too much taken out of your paycheck. Talk to your employer’s benefits coordinator about adjusting your deductions and add that money to your savings account every month instead.
- Be penny-wise.
The saying may be “penny-wise, pound foolish,” but there’s nothing foolish about consciously cutting out a lot of small, regular and unnecessary expenses. Cut back on the dinners out and the daily lattes. Instead going to the movies a several times a month, rent movies online or join a streaming service like Netflix or Hulu. Look at your daily life and you’re sure to find some changes you can make to save.
Find out more about the home buying process with our Homebuying 101 and read this article on Understanding What You Can Afford. Also find out if there’s an assistance program where you live with this state-by-state guide. Taylor Morrison works to make the home buying experience as simple and stress-free as possible. If you’re considering purchasing a home in one of our communities, consider using the Taylor Morrison Home Funding program.