75 percent of Americans state that buying a house is one of their top priorities. Despite the inflating prices and competition to enter the market, it’s still a dream for many.
Buying isn’t a house is the real struggle, it’s saving up for one.
There are likely dozens of untapped options available to help you save. You might be able to afford a new house sooner than you think.
Think saving for a house is next to impossible? Think again. Here are four ways to make it happen.
1. The Longer You Save the Better
When do you want to buy a house? In two, five, or seven years? The longer you have to save, the easier it will be.
Decide what the amount you need to save is. That should include the down payment, insurance, and closing costs.
Then, divide that number but the number of months you have to save. The more months, the smaller the monthly saving amount is. You might only have to save a couple hundred dollars per month if you don’t want to buy for five or more years.
2. The Real Estate Market Ebbs and Flows
There are tons of factors that affect housing prices. One of which is the economy. When the economy dips, house prices decrease.
Some say the American market is primed for an impending dip. There will likely be a switch from a seller’s market to a buyer’s market soon.
If you can wait until the real estate market is in your favor, it might be much cheaper to buy a house.
3. The Variety of Loans Available
You don’t have to rely on your main bank to give you a mortgage. There are lots of options when it comes to financing your home.
In fact, some loans don’t even require a down deposit. Read more here about buying a house without saving for the down payment first.
Fixed rate mortgage loans, adjustable rate mortgage loans, and FHA loans are all options. Research all your options and see which ones you’re eligible for.
4. You Can Get Assistance
It’s becoming more common to ask for help when buying a house, especially for first-time home buyers. If you don’t have enough saved or don’t have good credit, ask for help.
Your parents, grandparents, or other family members might be willing to loan you the money. Or, they could co-sign the mortgage with you.
Whether they gift you with the money or treat it like a loan, you get to buy your house sooner. Getting into the market is the hardest part and this will help you break in.
Want More Tips on Saving for a House?
Buying a house doesn’t have to be as hard as you think. Besides earning more and spending less, there are ways to make it easier.
Use the tips above on saving for a house. Remember, patience is the name of the game. Get creative with your financial resources and look at all possible options.
For more tips on saving for big purchases, check out the Saving Money articles page.