Raleigh Homebuyers | 6 Ways to Save Money for Your First Home

savings jar filled with coinsFor many first-time home buyers, the idea of a 20% down payment is terrifying. It’s one of the biggest obstacles to homeownership. Maybe you want to own a home someday, but the thought of saving up thousands of dollars for a home purchase has deterred you from seriously considering it.

First, you should know that there are a lot of different loan programs available which require far less than a 20% down payment.  In certain areas of the Triangle, you might be able to apply for a USDA 0% down payment loan or a loan with as little as 3-5% down payment. Plus, if you work with our participating lender, you can qualify for special offers to help you save thousands.

Second, it is possible to save enough money for a down payment and make your dreams of homeownership a reality. Here are just a few of the ways that you can start saving.

1. Track How Much You Spend Now

When saving for your first home, you’ll need to stick to a budget. Finding out how much you spend on different expenses can help you figure out where you can cut your costs. Consumer.gov outlines a few tips for creating a budget here.

2. Determine What You Can Afford

home buyer tracking financesEven if you don’t plan to buy a home for a few years, figuring out how much home you can easily afford will make your savings goal more concrete. Don’t forget to include taxes, insurance, utilities, and maintenance in your monthly payment calculations.

3. Start Small

Start saving for your down payment and other homeownership costs as soon as you can. The earlier you start, the more time you’ll have to reach your goal without following a strict budget.

4. Shop Around for Other Loans

If you find that a 20% down payment is unrealistic, you can opt for a mortgage that offers lower down payment options. FHA loans, for instance, offer 3.5% down, and VA loans offer no money down. USDA loans are another 0% down payment option that is available in certain areas around Raleigh.

Make sure to do your research. If you put less than 20% down on a home, you will have to purchase private mortgage insurance. If you like, feel free to contact one of the Capital City Real Estate Group brokers who can discuss more in depth about home financing options available to you and recommend a lender with programs that can help you meet your goals.

home buyer looking at bank account5. Make Your Savings Automatic

Many people find it’s easier to save money if it’s automatically transferred into a savings account every month. Check to see if your bank offers automatic funds transfer services, or ask if your employer can direct a portion of your paycheck into your savings account.

6. Create a Separate Savings Account

Establishing a savings account specifically for your down payment and homeownership costs is another great way to set aside money for a home. If you decide to automatically transfer money to savings, creating a separate account may make it even easier.

We Can Make Your First Home Buying Experience Easier

first-time home buyers moving inReady to find out more about purchasing you next home? The REAL estate experts at the Capital City Real Estate Group in Raleigh are ready to help you every step of the way.

Let’s make your dream home a reality. Call us Today!

About Capital City Real Estate Group, Inc.

Moving to North Carolina years ago was the best decision my family and I could have made. We were looking for a change from the cold Michigan winters and the volatile economic climate. The Triangle was the perfect choice with its mild winters, quality of life and diverse economic base. I have always held as my personal values and guiding principles: Professionalism, Integrity, Dependability and understand the meaning of perseverance! I began my real estate career in 1996 as a commercial investor. This led to a Director of Property Management position for multi-family and commercial property and now, residential real estate as the Broker/Owner of the Capital City Real Estate Group, Inc. - eXp Realty here in Raleigh. I put myself through the evening MBA program at the University of Michigan while working full time and raising a family. Prior to real estate, I earned a Master of Science in Engineering from U of M and currently hold 2 U.S. Design Patents and had a successful corporate career in the automotive industry. As a result of that experience, I've successfully been able to apply my problem solving ability to business. Community Involvement Wake Forest Downtown, Inc. Board of Directors Wakefield Rotary Club of Wake Forest, NC Board of Directors Rotary Club President-Elect Rotary Club Secretary position Paul Harris Fellow In addition to the Rotary Club, I support causes which strengthen our local community such as the YMCA - We Build People Program and Habitat for Humanity My wife's favorite charity benefiting children is The Angel Tree We participate in our church food and clothing drives to benefit our local community We also support the American Cancer Society, the Alzheimer's Association and the Humane Society Professional Associations North Carolina Real Estate Broker License South Carolina Real Estate Broker License National Association of Realtors (NAR) North Carolina Association of Realtors Raleigh Regional Association of Realtors Coastal Carolina Association of Realtors We are committed to delivering outstanding customer service! Marc Iafrate, MBA Broker/Owner Capital City Real Estate Group, Inc. powered by eXp Realty Raleigh, NC

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