Many people do not realize the importance of home ownership until they end up renting or living with someone else. Living under the thumb of a landlord does not impose a sense of pride, and living with someone else has too many negative aspects to even begin to list. No matter the circumstances, renting or living with someone for the rest of your life is not the same as owning your own house. They are not good choice for everyone, at least not on a long term basis. You might save money, but you will lose out in many other ways. The pride that comes with home ownership is phenomenal.
To get the most house for the money, it is important to save money for a down payment. Even those with USDA loans require earnest money, a certain amount of verifiable funds and enough to cover other necessary expenses. A savings account is also a good idea to have. It will look better to the underwriters if you can cover at least a couple of months of mortgage payments should something go awry. You do not have to save money for years to acquire a down payment on a house. Use these fast ways to gather and save the funds, and reach your goal of home ownership in less than a year. Also, keep in mind that more money down means a lower monthly mortgage payment.
Live with a Friend or Relative to Acquire a Sizable Down Payment
Living with a close friend or family member is by far the fastest way to save money for a down payment on a house, but it is not necessarily the easiest. As previously mentioned, living with other people outside of your immediate family is not always pleasant. If you get along otherwise and establish a concrete plan for sharing expenses before moving in, it can work quite well. Simply eliminating a rent payment can enable you to save money for a down payment on a house, but it has to benefit the host family to work without a hitch. To prevent major problems with sharing food and other consumables, buy groceries, soap and other household disposables for the entire family. Pay the gas and electric bill as well. Everyone is more likely to get along if a plan is in place.
Cut Back on Unnecessary Expenses
If living with someone is not possible, do all that you can to cut back on unnecessary expenses. Stay home more often, cut back on gas and electric usage, water and entertainment. Simply cutting out two restaurant meals a week can make a huge difference. The article entitled Ways to Cut Household Bills will help you to achieve your goals.
Work a Part Time Job
Hard work pays off, especially when working toward buying a home. When striving to save money for a down payment on a house, obtain a part time job. Save all of the money from the extra job to use for the down payment. Have it directly deposited into a savings account to avoid temptation. You will be contributing to your future while increasing your sense of pride in a lifelong way.
Source: Current USDA Mortgage Requirements and Professional Advice from Hallmark Mortgage