Buying a House: How to Save for Your Down Payment

Read on and find out easy steps on how to save for your down payment.

10:15 30 May 2013

If you’re thinking about buying a home, the first thing that you need to save up for would be the down payment.

 

This is typically 3-20per cent of the actual value of the house, and it can usually range from ten thousand to one hundred thousandpounds, depending on the type of house you’d like to buy. 

 

Below are the easy ways to save up for the down payment. 

 

1.Planning. If you’re sure that you want to buy a house, start making plans on how you can save up for the down payment.

Take out that old calculator and see how much you can save every week, every month, and throughout the year. This will give you an idea on how soon you can come up with enough money. 

 

2.Sacrifice is needed. You need to forego some things in order to save a lot of money in as little time as possible. If you’re smoking, for example, and if you spend a couple of pounds every day, saving this money instead of burning it can really help.

You may also skip some holidaying abroad or minimize the number of times you dine at expensive restaurants until you raise the amount of money that you need. 

 

3.Ask for help. Parents and friends are usually more than happy to help when you’re planning to buy a house. So, don’t hesitate to ask for a loan. However, make sure that you repay this loan ASAP so as not to break their trust.