Perfect Home Realty
Mary Nielsen, Perfect Home RealtyPhone: (210) 860-8516
Email: [email protected]

Reaching Down-Payment Goals

by Mary Nielsen 07/07/2019

Saving enough funds for the down payment on your home can be an obstacle for everyone. With general living costs and accumulated debt (Student Loans!), many young couples and professionals don't believe they'll ever save enough to move from being renters to buyers. There are steps you can take to put aside the funds you need for your down payment, but you’ll need to consider your priorities and a serious commitment to your spending and saving strategy.

Take a look at the median house prices in the area you want to buy and set a realistic budget for the price of your new home based on your current income and means. If the average home price is around $275k, then with a standard loan you’ll need about $55,000 for your down payment.

First, open a separate savings account, or designate one of your accounts for the money you’ll put aside. If you can separate your funds from the checking and savings accounts you access on a regular basis, then you'll help yourself refrain from using your down payment savings for other purchases, maintenance, or emergencies that arise.

Second, analyze your spending habits and create a realistic budget based on your current income to help you make strategic spending cuts. There are many free apps, spreadsheet templates, and useful blogs to help you set up and manage your budget. Inquire with your local bank to learn if they offer financial advisory services or can set you up with a partner to help you review your budget—many credit unions provide these services free with membership. Check what your financial institution offers and take advantage of free wisdom!

  • Review your memberships and subscriptions. Can you consolidate your streaming services, cancel NFL channels after football season, or join a more affordable gym? 
  • Instead of going out to eat or to the movies for date-night, set a limited budget for entertainment and take a few extra minutes to discover the many free activities your city has to offer. While making these significant changes, it is essential to allow yourself to continue to have fun times and relieve some of the pressure you're adding to your life—finding more affordable activities and restaurants can help you spread the fun money a little further and still put significant funds aside for your down payment.
  • Curb your unnecessary purchases. For some, this is one of the most difficult changes to make. From little convenience store purchases to emotional retail shopping, you’ll have to monitor your habits to catch yourself before you make purchases you don’t need. If you need the energy drink every morning, take the time to stock up when they’re on sale. Find a coffee shop that offers deals or a punch card (at least!). And if you can’t cut all the retail shopping, try limiting yourself to resale stores or clearance outlets to curb spending. 

 There are many ways to save for your future home. Work with your real estate professional to determine what your loan and down payment requirements might be. Then, get started on your savings plan!

About the Author
Author

Mary Nielsen

 Mary Nielsen, is a leading real estate broker in San Antonio and owner of Perfect Home Realty.  Her real estate experience started as a young child working with her father, a real estate agent and investor. She settled in San Antonio long term in 2011 and entered sales full time in 2013. Mary holds the Accredited Buyer Representative (ABR), Counsel of Residential Specialist (CRS), Graduate Realtor Institute (GRI), Military Relocation Professional (MRP), & Historic Home Specialist (HHS) titles, Bachelor of Fine Arts (BFA), Master of Arts (MA) in counseling, and Master of Engineering Science (MES) in Computer Science. Mary serves on the REALTOR® Image & Community Outreach committee and is a participant in the 2019 Texas Realtor Leadership Program.  With Mary’s history and experience with 8 moves around the country, she has a particular passion for families in need of relocation and people searching for new home construction. Mary has helped 80+ families with $14 million in sales. Mary has personally invested in real estate since 1997. She has built a personal single and multi-family home portfolio of over $2 million in value, and is partnered in two apartment complexes totaling 417 units. She is a regular volunteer with Texas Ramp Project, Animal Defense League, and Haven for Hope. Client education & consistent communication are cornerstone to her business. Mary Nielsen is ready to be your trusted full-service real estate consultant.