Many potential buyers are shocked to find out that they actually will save money by purchasing a home versus renting one from someone else. In addition to building equity, there are multiple tax benefits that come from home ownership. Consult a professional tax preparer for more information on those.

Even so, a mortgage often requires a significant upfront cost compared to the typical deposit needed for rental unit. While some mortgages require very little or even no money down, it’s not unheard of for a buyer to put down 20 percent of the home’s cost as a down payment.

Homebridge has been working with home buyers and home owners for more than 25 years, and we’ve heard lots of stories of how people save money for the down payment on a home.

The following are some of our favorite tips from customers on how they’ve managed to save for the home of their dreams. Some of these our customers have used for years, some are relatively new, but all make sense and are easy to implement without too much effort on the part of the buyer. All may seem minor, but added up, they can make a huge difference in your savings.

  1. Pack a lunch and snacks: It’s really that simple. When you factor in the amount you spend on lunch while at the office, or even while driving about during weekend errands, that number really can add up. Consider packing a lunch to take with you and even some healthy snacks to bring as you run errands on the weekend. You may find that as your savings grow, your waistline may be slimming down too!
  2. Buy in bulk: Shopping clubs can offer massive discounts on everything from food to garbage bags. Of course, some people don’t have the room to store 20 rolls of paper towels, even if they cost less than a five roll pack at their local supermarket. When that’s the case, talk to your friends and neighbors about sharing the cost with you. They save, you save and everyone wins.
  3. Treat coffee treats as treats: Many of us have become accustomed to spending anywhere from $2 to $6 on coffee or related drinks each day. Those drinks can really add up over time. Consider cutting back to one trip to the coffee shop per week and buying a coffee machine or French press for home use. Then, you can pour the money you’d spend at a coffee shop into a savings account for your new home!
  4. Cut the cord: There are multiple ways we can trim our entertainment costs when it comes to watching TV at home. Digital antennas will allow many to watch their local programming for free and online services are advanced enough now that you can stream the latest TV shows and sporting events right to your TV with a few taps on a smart phone or tablet.
  5. Look into prepaid wireless plans: Many of us can’t live without our mobile phones. However, there is a lot more competition in the wireless world than there was even just a few years ago. Spend a little bit of time researching the prepaid wireless plans in your area. Many are offered by the same wireless companies you’ve heard of before, but come at a substantial discount compared to the yearly contract plans that dominate the industry.

 If you’re wondering if you’ve saved enough to buy the home of your dreams, feel free to call a Homebridge mortgage professional for a no-obligation consultation. You can find a list of our offices nationwide by clicking here.

Related Articles

Today’s world is digital. Financial transactions such as a mortgage are no exception. Many companies offering majority-digital or completely digital transactions have opened within the past 10 years, making it appear as though physical lenders are obsolete or at a disadvantage. Despite what some potential homebuyers may think, however, obtaining…
Read More of the post 4 Major Reasons Why Physical Lenders Are Better Than Digital Ones

In your search for the perfect place, you may have found homes in your market that are a bit out of your price range. Or, you may have found that you don’t have the traditional 20% down payment to buy a home. If you feel that you don’t have enough…
Read More of the post How an FHA Loan Can Help You Secure Your Ideal Home

The current turbulent economic and social environment has changed how many Americans spend their time and money; that’s a fact. However, this doesn’t mean you can’t have the home you’ve always wanted. Whether you’ve been simply entertaining the idea of buying a home or are already 100% sure, it’s worth…
Read More of the post Four Ways to Capitalize on Homebuying During 2020

Factors such as student loan debt, competitive real estate markets and low housing stock relative to demand have made many people believe that homeownership is beyond their reach. These issues can make homebuying seem intimidating, but they should not prevent you from making your dream of owning a home come…
Read More of the post How Can I Afford a Home? What Are My Options?

We recognize this is a difficult time for many people. Click here or call 866-913-2951 for more information and to learn about current options available to our borrowers.