The New Down Payment Rules

If there’s anything this insanely hot real estate market has taught us it’s that we know nothing. The rules can change with the wind and that means everything we’ve done for decades has been thrown out the window. This leaves us to wonder… What’s the best way to approach your down payment now? Here are a few tips and ideas on down payments in our new reality. 

Do The Math 

The simplest tip is often the most straightforward. Determine the tip top of your budget and then work backwards from there. Establish what loan options you have and the percent down payment they require. It’s easy to determine how much you should be saving monthly to achieve your goal. If you want to save 5% on a $300,000 budget, you’ll need $15,000. If you’re able to set aside $1,250 every month for a year, then bam, you’re there! 

Use Apps

Technology demands a lot of our attention but a lot of it is also here to help us. If you’re wanting to know exactly where all of your dollars are going each month, consider using tracking apps like Mint or YNAB (You Need A Budget). They can establish “buckets” for you where you determine how much you want for each area of your life: food, entertainment, and savings. 

Be Creative

It’s one thing to pledge to put every single available penny into savings for an undefined period of time. Doing this can cause resentment and boredom. You do have a life to live, after all! And it’s okay to enjoy your life even when saving for a huge goal. So, perhaps instead of saving every penny, decide each month to funnel specific spending into your savings. For example, if you’re keen on food delivery then for one month vow to save every bit you normally would have spent on food delivery. Other ideas are online shopping or movie and/or concert tickets. 

For more saving ideas, check out Realtor.com.