How to effortlessly save for a down payment for your first home in 17 months
If you think about a down payment in terms of the total amount needed to buy your first home priced at $200,000, here it is: $7,000. This is for a FHA loan with 3.5% down payment, the minimum required.
Your mind may not be able to grasp getting your hands on $7,000 lump sum, to use it as a down payment and buy your first home.
$7,000 saved in 71 weeks
But, if you committed yourself to saving just $99 each week you could save $7,000 in a little over 16 months ($99 * 71 wks = $7,029)
Seller’s assist up to 6%
Closing costs usually account for another 3% to 4% (in this case $6,000 to $8,000) depending on the escrowed funds required and other variables. Sometimes sellers will help with closing costs up to 6%.
You could accelerate that even further if you worked over time or an extra job to save even more each week. It all comes down to your goals and how determined you are to accomplish the goals you set for yourself.
Here’s a bonus that you may experience; once you know you’re making progress on this goal, not only you will automatically start to think of ways to do it quicker, but other areas of your life will improve as well. This one discipline once mastered will help you with other areas of your life.
How bad do you want to buy your first home?
For those that after searching in every nook and cranny couldn’t find $99 to save each week, either your resolve to buy your first home (or anything you want) isn’t strong enough, or you need to find a different job (or a 2nd one) to make this happen.
A simple trick that works every time
To strengthen your resolve and increase your chances of buying your first home, write your goal to buy the house every morning and every evening. Include in it the statement that you need to save $10,000 (or whatever the Dollar amount) by a specific date, such as August 7 of 2018. Make sure to WRITE this goal in specific detail every morning and evening; after waking up and before going to bed…I promise you will achieve your goal at least by the deadline that you set for your self. Don’t worry about how this simple exercise will help you do that, just do it. It is not hurting anything and may help you buy your first home at the very least.
Please tell me of other ways you’ve used or learned that were helpful in saving for a down payment to buy your first home or investment property.