Our Blog

How to Save Money for a Down Payment

Sun, 11 Mar 2018 by Steve Klein


One of the most important steps in purchasing new homes in Victoria TX is saving for a down payment. Saving thousands of dollars for a down payment on a home isn’t easy, but it’s definitely doable. Here are some ways to squeeze money out of your budget to build up your down payment as fast as possible:

-       Make a written budget. Carefully assess your monthly income and necessary expenses, and then see what you have left. Often the amount of discretionary income available will surprise you. Have you been spending it on frivolous items that you can give up for a while until your down payment is complete? Decide on an amount you can comfortably set aside from each paycheck to put toward your down payment. If you do that as soon as you receive your paycheck, you won’t be tempted to spend the “extra” money on things like dinner out and movies.

-       Cut back on everyday expenses. Instead of eating lunch at a restaurant every day or subscribing to premium cable TV packages, pack your lunch, revert to basic cable and put the extra money in an account for your down payment. Save all your pocket change and put that in as well. Cutting back now will pay off when you enjoy your new home for years to come.

-       Have a yard sale. Sell everything you don’t need, including big-ticket items that you would gladly trade for more money toward your new house.

-       If you receive monetary gifts, raises, bonuses or tax refunds, add them to the down payment savings right away, before you’re tempted to use the money for something else.

-       Check your credit reports and clean up any negative issues before you go house hunting. Having a good credit score can put you in a position to get a better deal on your mortgage and possibly allow you to make a lower down payment.

-       If your income is limited and you’re a first-time homebuyer, look for assistance programs from the Department of Housing and Urban Development (HUD). They can help you get into your first home with a minimal down payment.

When you’ve achieved your goal of saving for a down payment, celebrate by calling Steve Klein Custom Homebuilder at 361-572-4101. They’ll be happy to tell you about their gorgeous Terravista and Escalara Ranch 1833 communities of new homes in Victoria TX.