Daily Juice – Home down payment
Welcome to the Daily Juice Show, where we discuss just one “ingredient” of the complex money topics you face.
Buying a home is an exciting life milestone, but it can also be intimidating. Your home will probably be the most expensive purchase you’ll ever make, so you want to establish a responsible plan for ownership. If you’re a little daunted about saving up for a down payment, here’s how to get started.
Don’t overspend
Work it backwards: Do you have a spending plan in place? How much mortgage can you afford? What does your cash-flow look like? Remember a rent payment doesn’t equate to a mortgage payment.
Set a purchase price range
Based on the purchase price figure out what your down-payment goal is. Is it 5%, 10% or 20%?
How are you going to fund it? Or if you already own a home, are you going to sell it and fund your down payment with the proceeds? How long will it take you to save?
Spring is the best time to buy, more inventory is available. Buying a home should be a well-planned process. Develop an effective down payment plan by considering the precautions and weighing your options.
Until next time, remember: It’s your money, and your future wealth, just one sip at a time.
