Depending on your type of loan that you get, you will need anywhere from 3-20 percent of the home cost.  How do you get there, here are some ways.

  1. Know your budget.  There are plenty of programs on the internet that can help you know your budget.  Or if you have a bank you love, there is someone that can help you determine that too.  Your home expenses should be less than 28 percent of your income, also include utilities, if you have a Home Owners Association fee, and an emergency fund for anything unexpected.
  2. Once you know your budget, decide on a timeline. Hopefully you have wiggle room to start saving.  “A good way to set a monthly savings goal is to subtract your current rent from your estimated mortgage payment, including principal, interest, property tax, home owner’s insurance and mortgage insurance, then save the difference.”
  3. Open a Savings Account. Having a savings account to hold that money will be less tempting to spend it; compared to if it is in your checking account.  Of if you have time, do a certificate of deposit or a CD.
  4. Start Saving. How do I start?  Cut down on extra expenses, coupon, take a side job a few hours a week.
  5. Pay off debt. Take the time to pay down any credit card debt you have.  A mortgage lender will want you to have a low debt-to-income ratio.    Plus it helps your credit score.

Hopefully this has helped a little for you to start thinking of how I can manage to have a home and how to start.

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