Sunday, October 19, 2014

Chipping in for the DP

Admit it. Buying yourself a house is one of the best moves you’ll ever make, one leg of what some people call the triumvirate of basic needs: food, shelter, and clothing. However, it requires hefty financial sacrifices, especially when a seller of one of your prospect homes for sale calls for putting in a modest down payment. Here are some strategies you can try to pool that much cash:

Fewer Expenses
Sometimes, the little habitual things you pay for every day will be a few dollars you could have saved for the down payment. For example, take the time to cook your food at home and bring some to work, which will reduce the need to have lunch out with your friends. Drafting a list of expenses for the day or month will help identify other items you can eliminate and therefore add extra funding for the down payment.
Extra Work
Even if your day job pays well, you can increase the coffers for the down payment by tailoring any hobbies into another livelihood opportunity (as long as it doesn’t detract from the day job). If you’re good at assembling and painting some model kits, for example, you can offer your services for commission building. At the same time, compute the expected monthly savings you need and make arrangements with your employer about putting them in a special account.

A chunky down payment will work well towards building equity in your new home. Time to roll up those sleeves.

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