Marketplace Homes Reviews Simple Ways to Save for a Down Payment
Whether you’re a first-time homebuyer, or a repeat customer, creating a plan to buy a new construction home can seem a bit overwhelming. Taking the home buying process step by step will help you map out a custom plan for you and your family, and will allow you to achieve that new construction home as soon as possible! What’s step number one? Saving for a down payment! Here’s how to get started.
- Figure Out How Much You Need to Save
Depending on which type of mortgage you choose, the amount of money you need for a down payment can greatly vary. If you decide to go with an FHA mortgage, you can put down as little as 3.5%. Through this type of loan, a new construction home with a purchase price of $200,000 would require a down payment of about $7,000.
- Keep Track of Your Spending
Now that you know how much you need to save, you have to figure out your average monthly spending. Monitor ALL of your spending for one month by separating each purchase into its respective category. At the end of the month, get the total amount for each category. You know have a benchmark of how much you spend and can continue on to Step 3.
- Budget, Budget, Budget!
Now that you know how much you spend, you can figure out what your budget should look like. A good budget should contain your normal monthly spending, room for regular expenses that occur every few months, and money that can be put towards your down payment savings.
- Plan to Save
The ideal amount to put away for savings per month is at least 10-20% of your take-home pay. If your budget doesn’t allow for that much savings, re-review your spending to identify areas where you can make cut-backs.
- Set a Timeline
Once you’ve figured out an average of how much you’re able to save each month, you should be able set a reasonable goal and timeline of when you will have enough money for a down payment. Make sure you check your progress each month. It will help you stick to your plan, and if any problems arise, you will be able to fix them right away.
Once you’ve saved up enough money for the down payment on your new construction home, the next step in your custom plan is to speak with a new construction housing expert like Marketplace Homes. You may be wondering, “What can I rent my house for?” With our Guaranteed Lease Program, you can buy a new home and rent the old one. Our website allows you to search new homes across the country. We work with local and national builders such as D.R. Horton Homes, Drees Homes, Lombardo Homes, William Ryan Homes, Del Webb Homes, Allen Edwin Homes, and many more. Contact us today to learn more about our home leasing program.