How to Start Saving for a House
Making the decision to buy your first home is undeniably exciting! And while you may be eager to get your foot in the door of potential homes, it’s key to take time and be savvy about the process. The most important step to take before beginning the home buying process is to start saving your money. Before you can step over the threshold of any home, you’ll need to know what you can afford and how much of a down payment you’ll be making.
This page highlights tips and advice on what you can do to start saving for a house.
5 Steps to Start Saving
You’re probably planning on taking out a loan and paying a mortgage for your new home. But you’ll still need to cover the cost of a down payment, which comes out of your own pocket. That’s why it’s so important to start saving now.
Step 1: Decide How Much Home You Can Afford
So, how much home can you actually afford? On average, buyers should shoot for a mortgage payment that is 25-30 percent of their monthly take-home income. Mortgage payments that are higher than that can cause financial stress, so be realistic. Here’s a closer look at how to determine how much house you can afford.