5 Creative Ways to Save For a Down Payment

Saving for your first home can be a challenge. Not only do you need enough for a decent down payment, but you'll want to have a sizable amount in your savings account for emergencies as well. Today's blog from your Lake of the Ozarks mortgage lender offers some creative ways for you to cut back on daily expenses to put more in your home buying fund.

1. Limit the Meals You Eat Out. 

One of the biggest expenses that people have, often without even realizing it, is the amount of money spent on eating out. You grab a meal here or there, grab some drinks with friends after work, and those small purchases can really add up as the month goes on. While it may seem easier to avoid cooking and just grab something quick from a restaurant, those habits are cutting into your home buying fund.

2. Cut Back on Grocery Expenses. 

If you're like most Americans,  you walk into the grocery store and make several impulse buys. Something looks great, but then you end up with a cart full of junk food and nothing that really goes together. Plus, if you buy too much perishable food, you could end up throwing stuff away because you can't eat it all before it goes bad. To cut back on grocery waste and impulse buys, plan your meals before heading to the store. Make a list of what you need to get and try to stick to that list. You'll be surprised at how much you can save on groceries just by doing some planning ahead. You also might consider looking for coupons, or planning your meals around the sale ads to save even more!

3. Reduce Your Utility Bills. 

While it may not seem like a lot to save a few dollars each month on your utility bills, those numbers add up over time. Make sure you turn off lights when you leave a room, and don't leave the water running while you're brushing your teeth. Set your thermostat just a few degrees higher during the summer and a few degrees lower in the winter to save on your electric bill. You can also adjust that thermostat while you're gone for the day to save even more. Think about all your bills to see how you might be able to trim those expenses, even just a little.

4. Decrease Your Gasoline Usage. 

The cost of gasoline is another monthly expense that you'll want to keep an eye on. To decrease your gasoline usage, try shopping online to cut down on the number of trips you make to the store. If that's not the best option for you, try to group your errands together. Instead of just making a trip here and there when you think about needing something, carve some time out of your day to stop at multiple stores in the same trip. You'll also want to pay attention to gas prices. Look for a place on your route with the lowest price. The Gas Buddy app is a great way to compare gas prices at the stations near you. Some grocery stores, such as Hy-Vee or Woods, even have fuel saver programs that help you save on gas when you purchase everyday items at their store.

5. Pay Attention to Unused Subscriptions. 

Many people have subscriptions that they don't even use. The charges come out of your account every month without you even thinking about it. Take a look at any monthly subscriptions you may have signed up for and examine which ones you are actually using. Do you have a monthly gym membership, but can't remember the last time you went there? Cancel that membership and get some dumbbells and an exercise ball to do some workouts at home instead. How much are you paying each month for TV service? Do you only watch a few of the hundreds of channels you're paying for? Consider scaling back your package. With the streaming services available today, many people are cancelling their TV service altogether and watching their shows through Hulu and Netflix.

By taking a closer look at your monthly expenses to see where you can cut back, you'll be on your way to saving for a new home in no time! As your mortgage professional at the Lake of the Ozarks, I'm here to help you throughout the entire Lake of the Ozarks home buying process. If you're ready to get started with the pre-approval process and determine how much you can afford in a new home, give me a call at 573-746-7211 today!

For Lake area news, resources and tips on financial services, please 

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Saving for a Home: 5 Money-Saving Tips

When you decide you're ready to take the plunge and purchase your first home, you need to think about saving for a downpayment. Buying a home at the Lake of the Ozarks is a big investment and the more you can put down upfront, the more you can save on your home purchase. In today's blog, your favorite mortgage lender at the Lake of the Ozarks offers a few money-saving tips to help you start working on that downpayment.

1. Establish Goals.

Figure out how much you need to save for a down payment. It’s easier to save with a goal in mind than to just save a little here and there. Talk to a mortgage lender about a pre-approval, so that you know about how much you can borrow. You also want to think about how much of a monthly payment you can easily afford. Once you determine the price range of homes you'll be in the market for,  you'll know about how much you should save for a decent downpayment.

2. Set a Time Frame.

How soon do you want to be in your new house? If you know how much you need to save and how long you have, you’ll be able to set monthly savings goals. Make sure your time frame is realistic. Saving enough money for a downpayment in just a couple of months probably isn't going to work. Give yourself enough time to start out slowly and work your way up to enough savings to purchase a home at the Lake of the Ozarks.

3. Find a Safe Place to Store Money.

A jar in your bedroom might not be the best place to store your savings, as you can easily dip into it. You also don't want a lot of cash sitting around where it could easily be lost or stolen. Consider a typical savings account or a CD, something without much risk. While other investment options might offer a better return on your money, you don't want to risk losing your savings either. Consider talking to a financial advisor about your best options.

4. Make Room in Your Budget.

You might have to cut back on some expenses in order to save enough each month to meet your goals. If you don't thoughtfully create room in your budget for savings, that money can easily just get spent on something else. Think about the things you buy each week; of those things, what items are unnecessary wants? Do you want those things more than you want a house? Think about that each time you want to buy something. Prioritize your purchases and add that extra savings to your house fund.

5. Set Up an Automatic Savings Plan.

You could allocate a certain amount or percentage of each paycheck to go directly into your chosen savings account. Many banks offer a savings plan where money will be automatically transferred from your checking account to your savings account at the beginning of the month. You can set the amount to be transferred depending on how much you can afford to set back each month.

If you're currently saving for a home, talk to your Lake of the Ozarks mortgage lender about your options. The pre-approval process is the first step in a successful home buying experience. As your local lender, I'll work with you every step of the way! Give us a call today at 573-746-7211 to get started.

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

5 Ways to Save for a Home Loan

For most home buyers, paying in cash isn't an option. Most people will have to secure some type of home loan at the Lake of the Ozarks. While there are programs out there that require little to no downpayment, home buyers still need to have some cash on hand. Plus, with a downpayment, home buyers are likely to get a better interest rate. So how do you come up with that cash you need to have on hand? Your Lake of the Ozarks mortgage lender has a few ideas on ways you can save for a home loan:

1. Plan: Budget your spending and set up direct debit to make it easier each week.

One great way to make a budget is to create a spreadsheet. Start with your net monthly income. First you'll want to subtract your set expenses, such as rent, student loan payments, car payments and credit card payments. With the money that's left over, you'll need to decide how you want to spend it. Start keeping your receipts, everything from gas purchases to dinner out with your friends. Anything you spend money on needs to be documented. Once you know where all your money is going, you can see where you might be able to cut costs. To create savings, you're going to have to be ruthless. Be sure you can justify everything you've bought.

2. Limit: Think to reduce costs. Only go out once or twice a week. Don't over do it.

As mentioned above, the only way you're going to be able to increase your savings is to limit your spending. One of the easiest ways to cut costs each month is to limit the amount of times you go out. Whether it's having dinner with an old colleague or grabbing drinks with your girlfriends, a night out can easily add up to more than you were planning on spending. If you go out several times a week, those costs can significantly add up. The goal here isn't to lock yourself in the house and never have any fun. You just need to be aware of how much you're spending and what exactly you're spending it on.  

3. Increase: Create a second income. Consider selling on Ebay or freelance. It all counts.

Some people have seen success in saving money by turning their hobby into an extra paycheck. Any money generated from this new source of income should go directly into your downpayment savings account. From giving piano lessons or selling crafts to waiting tables on the weekends, there are endless opportunities to make some extra cash.

4. Debts: Pay them off, such as a credit card. It can help your credit which is needed to obtain a home loan.

While saving money for a downpayment is important, paying off debts is also important. If you're taking money away from paying off credit card bills to save up for your downpayment, you're not really doing yourself any good. Pay off any debt that you can, especially anything with high interest first. Not only will that be one less monthly expense you have to worry about, but you can improve your credit. The better your credit, the better deal you're going to be able to get on your home loan. 

5. Invest: Put your money in a high interest account and let it do the work for you. 

There are a variety of options for high-interest checking and investment accounts. Be sure to consult with your financial advisor or tax professional on which option would best suit your situation. Keep in mind that funds that may be used for a downpayment should be easily accessible; check to see if there are early withdrawal fees or penalties for using these funds before you commit to any option.

Whether you're looking to buy a home next year or 5 years down the road, its never too early to start saving for a downpayment. If you are thinking of purchasing a home at the Lake of the Ozarks sooner rather than later, give me a call at 573-746-7211. As your Lake of the Ozarks mortgage lender, I can work with you on a pre-qualification so you have an idea of how much you can borrow and how much you'll need to save for a nice sized downpayment.

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Loan Officer

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.