As a first time home buyer, step number one is saving up for that all-important mortgage deposit. While mortgage rates and the mortgage process are just as important, if you can put down as much as 20% on your first home, you’ll be on pace to move into your dream home with no hitches.
First things first, how do you get as much cash saved up as possible? Here are five tips to save up cash quickly for that first home mortgage deposit:
1. Let Go of Additional Expenses
That gym membership you never use? Consider calling to cancel. Those weekly brunches? Swap them out for cooking at home. While the little things may take a while to add up, over time, you’ll soon have saved more cash than you realize. It may be a long road to that deposit, but if you can cut back now, it’s more than worth it for the future.
Here’s some things you might consider putting on pause until you can secure your dream home:
- Subscription services like Netflix, HBO Go, Hulu, Amazon Prime, Disney+, etc.
- Eating out: stick to eating out once a week at best
- Lottery tickets and sports betting
- Expensive nights out
2. Consider A Side Hustle or Working Overtime
Seconds jobs, side hustles, and anything else in-between is a great way to boost your house savings as quickly as possible. There are plenty of online opportunities, or even just picking up a couple of shifts of overtime at work. Get that additional hustle in now, and you’ll soon be profiting from all the extra work you’re putting in.
Some side hustles to consider include:
- Driving for Uber or Lyft
- Buy and flipping things on eBay, LetGo, and other apps
- Start an eCommerce store on Shopify
- Sell a niche service on Fiverr.com
3. Move to a Cheaper Area
It may sound impractical to move to eventually move again, but if you can find housing at a reduced rate, you can put that extra cash right towards your mortgage deposit. If you live alone in a two-bed, consider moving to a studio and putting additional furniture in storage or sell it. A little discomfort now can make owning your own home that much better. Also, you might want to consider living with roommates to save on monthly rent payments. Do what work’s best for you and your lifestyle.
4. Use Saving Apps (and Investing Apps)
Nowadays, instead of opening multiple new bank accounts, you can use apps like Digit, Clarity, and Chime to help manage your cashflow and save. Digit is especially useful as it pulls savings from your bank account(s) and places it in goals you’ve set up within the app. The savings are usually the cost of lunch or less and can really build up over time.
Also, investment apps like Robinhood or Stash allow a place for your money to sit and potentially earn more cash overtime. We recommend consulting a financial expert or doing your own research before getting started.
5. Visualize Your Home Buying Journey
Planning out your home buying journey will help give you guidance on what you’re trying to accomplish. You won’t always anticipate every turn along the way, but by planning ahead, you can give yourself a real chance at home ownership.
New habits can be overwhelming, especially trying too many at the same time. You can budget, track expenses, limit spending, cut out unnecessary spend, and set cash aside, but you don’t have to do it all at once. Map out your journey and give yourself realistic baby steps- walk before you run.
Now You Know
Unsure on where to start? Talk to a mortgage expert about what options you might have. At Preferred Mortgage Corp. of NY, we’re ready and waiting to support our clients with home buying tips and tricks that’ll help to secure a new home loan. Contact us today with your mortgage questions.
Do you want to learn more information about home mortgages?
Checkout our Mortgage Basics page or our FAQs section.
Preferred Mortgage Corp. of NY is a mortgage broker located in Rochester, NY.
We provided mortgage services throughout New York State including Rochester, Buffalo, Syracuse, Albany, and New York City. We’re also licensed to do business in Florida. Click here to contact us about our mortgage services.
Preferred Mortgage Corporation of New York – NMLS # 44812 Registered Mortgage Broker – NYS Department of Financial Services & Licensed Mortgage Broker Florida Office of Financial Regulation Loans Arranged Through Third Party Providers