The bigger the down payment, the better mortgage terms you can get, so it is very important to start putting away money for that down payment. The problem is that we are so used to living within our salary that we may not see how we can save even a dime.
Here are some ways that home buyers just like you accumulated a down payment.
• Put yourself on a savings program where out of every paycheck a certain amount goes into a savings account.
• Do not cash your tax refund check or bonus checks; instead, put them directly into a savings account.
• Take a second or part-time job for a short period of time.
• Save the money you would have put into vacation travel.
• Sell stuff on eBay, at flea markets, or at garage sales. If you cannot tolerate dealing with the haggling public, bring the things to a consignment shop or other facility that will sell them for you.
• Tap some of your retirement fund. Only do this with the advice of an accountant, though, because you may incur tax problems.
• Borrow from your parents.
• See if your employer, credit union, or other membership organizations have a financial assistance plan. It is not unusual for employers to offer either direct financial assistance or contacts that provide financial assistance to employees.
• Check out both federal and local programs that provide assistance for first-time home buyers, those who buy in certain areas, the military, and others.