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.

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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

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.