The down payment on your new home is the biggest test of your ability to save money that you’ll likely ever face. From budget planning to mortgage life insurance, here are the top ways of securing and protecting this enormous investment.
While it’s true that being a homeowner comes with a lot of responsibility, it also offers many rewards. Some of the reasons why you would choose home ownership over renting include:
- It’s a good investment
- It’ll help you build a strong credit history
- You have the freedom to create the living space you want
- You build equity
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3 Secret Sources of Down Payment Money
The down payment may be the single largest cash expenditure you ever make; in fact, most people save for years to be able to afford it. The secret? Many buyers are unaware that they actually have multiple sources of down payment resources at their disposal, hidden in plain sight.
If you are feeling some anxiety about affording your down payment, you may want to consider these 3 unexpected sources of money:
1. The Biggest Line Items in Your Budget
If you are serious about buying a home and coming up with funds for your down payment, then you must look over your budget and look at what you can eliminate (what you need versus what you want).
Some items that you can slash from your budget to increase your savings include:
- Takeout lunches
- Coffees and bagels
- Cutting down on your cable bills
- Any big vacations you have planned
- Premium cellphone service
Remember: Using the money you would normally spend on these luxury items to bolster up your down payment savings can really hurry up your home buying timeline.
2. Your Possessions
When you are looking to save money, there are really only two things you can do: spend less or earn more. One of the easiest ways to earn more money for your down payment is to sell the thing you already own. Things that buyers-to-be often sell include:
- Cars, motorcycles or RVs.
- Designer clothes, shoes, and handbags
- Any antique furniture
- Electronics (eg. TVs, computers, old smartphones)
- Books
Tip: Underestimating the amount of money you can bring in from the things you already own is a big mistake as this can be a relatively simple and easy way to increase your savings.
READ ALSO: 5 SIMPLE WAYS TO PAY YOUR MORTGAGE OFF EARLY
3. Your Skills and Time
Another way to make a little more money, together with selling any items or valuables you no longer need, is to get to work! Why not spend some of your off-time, evenings, or weekends leveraging your hobbies or professional skills to bring in some extra cash? This can include:
- Small business projects
- Bookkeeping
- Customer Service Rep
- Dog/Pet Sitter
- Ride Share/Delivery Driver
Remember: Once you decide to be creative about where to find money for your down payment, using your skills and your time creatively is a fantastic way to open the financial floodgates.
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To find out more about how our flexible and transparent mortgage life insurance products can help protect your family home and loved ones, contact us at 1-866-821-1439 or fill in our online contact form.
