These days, the reality of buying your own house is a hard one. More often than not, the price tags associated with real estate are higher than they used to be a few decades ago, without the equally big raise in our purchasing power ability. In simple terms, while back in the 1960s, it was perfectly normal for a blue-collar worker to purchase their own suburban home, now such a move is virtually impossible without some form of outside help. While many can count on receiving an inheritance to purchase their own place, others have to do it the hard way.
But not necessarily the hardest. The banks can often offer you a mortgage that's manageable with your level of income. The issue is it often involves a certain amount of down payment - something you may not have the budget for. To help you with that, we've prepared a list of ways in which you can raise enough money for one and thus get your mortgage and the house of your dreams associated with it, including asking your loved ones to contribute, getting a second job, selling some of your valuables, moving back to your parents' home to save on rent and even living as economically as possible. Read on as we explain how to save enough to get your mortgage and thus the long-awaited new home.
Get a Second Job
While this isn't everyone's cup of tea, it's still a viable option when it comes to raising enough money for a down payment. The key is finding a job that pays well enough to cover both your mortgage and your basic living expenses, and at the same time, allows you to have some spare time to find another job or start looking for an additional source of income. Ultimately, you're looking for something that doesn't cut into your sleep or limit your ability to do other things - like go out with your friends or spend time with family. The key is finding a job that works for you.
If you're lucky, you'll find one that pays enough to cover everything you need but doesn't take too much of your free time. In most cases, however, you'll have to sacrifice a bit of your free time and energy if you want to succeed. Keep in mind that you also have some additional expenses when it comes to second jobs, including transportation costs and overwork-related stress. And if you are subject to the latter, it might be a good time to read more about lawsuit loans.
Sell Your Stuff
The easiest way to raise money for a down payment is to sell some of your stuff. There's a whole range of things you can sell, ranging from the most common items like your old clothes, kitchenware, and furniture to the more unusual ones like your car or even paintings from your collection.
The former will help you raise some cash quickly, but the latter will help you raise more. If you want to buy a new house, it may be worth selling off a few of your valuables that'll be no longer needed. Why keep your old couch if it won't fit the style of your new home? It's better just to sell it and the associated tables and chairs to get a small return instead of just throwing it all away.
Also, there's the option of selling your old car. While this may not be an easy decision to make, it can save you a lot of money in the long run. If you plan on moving to a new house in the next few years, you might as well just sell off your old car and buy a new one that fits your budget better. It's more economical than keeping it for years and trying to sell it for a few bucks in the future.
Ask Loved Ones to Contribute
If you're lucky, there's someone in your life who's willing to help you with a loan or even a gift. While this isn't the best option in terms of repayment and interest rates, it can still be a good way of getting ahead in the long run. You may be able to raise enough money for a smaller down payment if you get a few of your friends or family members to contribute. A good approach is to inform them about your plans and see if they can help you out.
While some may be willing to lend you money, others might want to make a larger contribution. Imagine, for example, that your parents have a certain amount of money they can spare - maybe they won the lottery, or they've been saving up their earnings for years? They may be willing to give you some of their savings so that you can buy a new house and get rid of your rent payments once and for all. Even if they don't have much to spare, it might make sense for them to lend you $10,000 or so, which will help you with the down payment on your new home.
Move Back Home
Another way to raise enough money for a down payment is by moving back home. This is almost always an option for young people who are still in college and don't have any significant financial responsibilities. If you're living on campus with friends or in an apartment that costs more than what you can afford, consider moving back home and living under your parents' roof. It will definitely give you more time to concentrate on your studies and take care of those pesky financial issues.
Be Economical
The last option for raising money for your
down payment is being economical in terms of everything else. You may find
yourself having to make sacrifices in terms of your lifestyle and material
comforts - but it may be worth it in the end. Cutting down on costs is a great
way to save up some cash, which you can then use towards that down payment. For
example, if you have to choose between buying a new phone and investing the
money into a down payment, think twice before making that purchase.
In Conclusion
These are just a few ways to raise enough money for a
down payment on your new home. While they may not be the most comfortable
options, they are still worth considering. If you want to buy a new house,
there's no way around the down payment - you need to have it in order to apply
for a mortgage. The sooner you start saving for it, the better - but don't
let yourself be discouraged. After all, a new
