Today it is common that most first time home buyers use FHA financing to purchase their first home. There are many reasons that FHA financing is used. Buyers need 3.5% (or more) of the purchase price for the down payment. FHA has (at this time) more relaxed credit requirements. Etc. This article is not about FHA financing. You can search the site for posts on financing.
If you need 3.5% of the purchase price for a home and the median price in the Tacoma Pierce County area is $206k (depending on where you look) you will need to have saved at least $7210.00 for your down payment. That is a bit of change. I doubt you will find it in the sofa.
Since we are looking for creative and fun ways to save the money this weeks suggestion is Adjust the amount of money that is being withheld out of your paycheck. While not exactly creative or fun it is a solid way to help save for your down payment if you are not yet disciplined to put money away each paycheck. By having your employer take out more money either as a percentage of your pay or by adjusting your withholding each pay period you can begin to save additional money immediately. Once you have tightened your belt by this method you will soon realize you do not miss the money.
When you have decided to buy a home and you’re ready to begin the process make it as fun as possible by coming up with creative and fun ways to save. You will be surprised by how fast you can begin to create the nestegg you need to buy your first home.
Until next Monday…..
Scott. Wow, it’s so simple a caveman could do it. This advice is spot on. Learn to love saving, and buying a home from you will be a great, great experience. As in all things, doing just a little every day eventually creates something that is much bigger and more successful
No couch money needed….just set up a savings plan, and you’ll be able to buy your dream house in the Northwest.