Did you know that if you can make a down payment that’s 20% of the home's purchase price, you're considered a less risky borrower and you can benefit from lower interest rates? Unfortunately, 13% of all buyers and 6% of first-time buyers have cited that saving for the down payment is the most challenging task in the homebuying process. So, to help you with that, here are some ways to save up for a down payment when buying your first home in Chicago:
Open Up an Automatic Savings Account
Automating your savings account is the simplest option to save as you don't have to move money (that you could have otherwise spent) from one account to another. Moreover, since this account limits the withdrawals you can make in a month, your spending will be limited, hence ensuring that you save faster.
Lower Your Expenditure
Cutting down on the cost of non-essential expenditures through a self-imposed spending freeze can help you save for a down payment. This calls for you to reevaluate your expenses and stick to living necessities and life's essentials while forgoing non-essentials like dining at expensive restaurants. While this might be a challenging decision, it'll enable you to save faster for the down payment and own a home in Chicago.
A temporary downsize is worth the sacrifice if you want to accumulate your savings faster. Since your rent might be taking up the highest amount of money, it can hinder you from saving for a down payment. Downsizing to a smaller house can help you pay less rent and save the rest for the down payment towards your new home.
Know How to Save for Down Payment and Buy Your First Home in Chicago!
Saving for a down payment will require you to make significant decisions and sacrifices to achieve your target. But owning your own home, as a result, is well worth the trouble! For more information on how to save for a down payment when buying a home in Chicago, contact our experts today at 773-420-8045!