Ready to buy your own place now? Here's what you need to know when it comes to its payment
Buying your own home is a huge step to take and unfortunately, not all of us have the money to buy it right away. That's why it's so important to know how to deal with the down payment. When it comes to this, many questions come up. The main one being: how much do I need?
The majority of people think that down payments always come up to 30 or 20% of the full house price. But turns out that this is simply not the case. According to a recent survey from the National Association of Realtors, the average down payment for first time buyers in 2020 was only 7%. Brittany Hovsepian, creator of The Experts Home Buyers says that this is a common misconception:
“A common misconception is that you have to put 20% down, That’s simply not the case — some people don’t even have a down payment at all.”
So, how to save for your down payment? first of all, you need to think if you not only are you ready but can actually afford to buy your first home. This all depends according to your salary, savings, and the price range you're looking for.
Once you clear all of that, the best thing to do when it comes to starting saving for your down payment is to create a budget, where you can estimate how much money you can destine to it every month. Real estate agent Mihal Gartenberg also recommends this advice, saying:
“If you’re looking to save up for a downpayment, the first step is to create a budget and stick to it. Put your money away the minute you get your paycheck so you don’t spend it, and take a hard look at your spending habits to cut costs wherever possible.”
After that, the best idea would be to open a savings account just for that, in that way you won't be mixing your everyday money with your down payment money. If you stick to this, it will be sooner than you think when you realize that you already have the down payment for your future and own home.