Let’s face it – trying to scrape together enough money for a down payment for your first Seattle home can be difficult at the best of times. This does not mean to say, however, that it cannot be done. Most people find a way to come up with a down payment for a their first home when they are serious about getting out of the rental marker and into the freedom that comes with owning a home. If you really want to own your own home, you can find a way to get that down payment.
Here are a few tips you can use to help you budget for the down payment.
1. Figure out how much you will need
If you are planning to purchase your first Seattle home in two years, for example, take a look at the price you’d like to pay and how much of a down payment you’ll need. Factor in the inflation rate when you’re looking at the total price of the home. Once you have an idea of the down payment you’ll need, you’ll have a stable base to work with.
2. Crunch the numbers
Don’t even take a look at your income right now. The first thing you need to do this determine how much money you’ll have to put away every month to reach the final figure in two years. The reason why you don’t want to look at your income at this point is you might get discouraged and figure that you won’t be able to make it in a short amount of time. Now is not the time to get discouraged – you’re just getting started! Just get an amount down on paper of how much you would have to save every month to get that down payment for your first Seattle home in place.
3. Figuring out solutions
Now it’s time to look at how much money you are currently earning. Don’t take a look at your budget as far as whether you can afford to put the required monthly amount away. Instead, examine how much of your income can go towards this amount.
Take the difference between how much you need and how much you can contribute every month and then look at solutions. This is what people do when they are serious about putting together a down payment for a first Seattle home. They don’t look at the stops, they look at solutions.
At this point, if your income cannot handle the amount you’d need every month to put together a down payment for two years, you have two options. Either you can raise your income or lower your expenses. In some cases you have to do both. Now is the time to get bright and figure out how to get this extra money. There is a way, even if you haven’t seen it yet.
For more information about buying or selling a home in and around Bothell contact Adrian Willanger, Coldwell Banker Danforth & Associates.
- 3 Strategies for Saving for a Seattle Home Mortgage
- Benefits And Pitfalls Of Buying A Home Using A Private Lender In Bothell
- Understanding Your Seattle Home’s Value
- Tips on how to make your Seattle home stand out from the pack when selling
- Owning a Second Seattle Home – Here’s An Ideal Plan For Your Retirement