Living on your own can be very difficult, especially with considerations like rent and upkeep. With the state of the economy and the skyrocketing cost of living, it’s no wonder that so many young adults are electing to stay living at home rather than getting their own place. According to a study by the Pew Research Center, as many as 52 percent of young adults in the United States are living with one or both of their parents.
As appealing as an apartment might be, a lot of young adults prefer to have their own homes. Of course, one of the largest hurdles to getting your own place is purchasing one. The first and most vital step of buying your own house is saving enough to make a down payment.
Here are six tips on how you can secure enough funding to make a down payment on your first house.
- Find a Good Mortgage
Few young adults have the money to pay for their home unaided. You’ll probably purchase your first house through the help of a bank or a mortgage lending company. Your down payment will therefore be dependent on the price of the house and the mortgage agreement you come up with the financial organization involved. Finding the right business to ask financial assistance from is crucial in determining how much money you’ll need to save. A mortgage with low interest rates is the most preferable.
- Select and Affordable Property
If you really want to purchase real estate quickly, it’s better if you select a first home that’s easily affordable. Don’t overstretch your resources by selecting a property that’s well above what you can conceivably pay for. If you’re looking for a house, select one that doesn’t have as many amenities but is still safe and secure. Luxuries you may do without include a swimming pool, an extensive backyard or even a second floor.
If you don’t have enough money yet, then renting would be a good option. Take a look at rental market trends in Philadelphia and find affordable apartment units in the city or nearby locations.
- Skip Vacations
As painful as it is to accept, you should definitely cut down on expensive vacations while you’re saving up for a down payment on your first house. Such trips cost a lot of money and while they can be worth every cent, they can also seriously detract from your efforts to buy a home. Overseas trips, even for just one person, can cost thousands of dollars, all of which you could have put towards buying a house. If you really want to go on a vacation, consider cheaper domestic trips. The best option involves no air travel and lasts about a weekend to better conserve your resources.
- Find Cheap Alternatives
Look over your expenses and future purchases and start making cost-affordable alternatives. While high quality can sometimes depend on the cost of the product, sometimes there are things that can work just as well as the expensive counterparts without the hefty price tags. If you’re looking for a replacement part for your gaming console, you can settle for a cheap PS4 controller from an online store rather than the full-priced branded product. Your grocery list can also be full of items you can substitute for cheaper alternatives. For example, unless your health depends on it, you can stand to eat non-organically grown produce since they are much cheaper.
- Take Extra Shifts
As hard as it may seem, you may have to work more shifts if you want to save up enough money to make a down payment quickly. If you want to go down this route, you must be very careful not to burn yourself out. Extra shifts aren’t just physically exhausting, they are also mentally tiring. If you live with your parents or roommates, explain your situation to them. You will need their help and support while you slog through multiple shifts. If you have any chores, arrange for someone else to do them while you relax and recharge. Coordinating with other people is essential when you’re working overtime to maintain your well-being.
- Start a Side Hustle
Finally, one of the best ways to save yup money quickly is by opening another income channel. A side hustle can give you more money and be more controllable than getting an extra shift. For example, you can become part of the gig economy and use your car for ride sharing. Or you can monetize a hobby like baking or knitting. This can take more time and resources to set up, but they can be very rewarding. With enough effort, your side hustle can even be profitable enough not just to pay for your down payment but also become your primary occupation.
Buying a house can be incredibly difficult, but with the right help and information, you can set down a down payment with ease. These tips will help you become a home owner in record time.