From Pennies to Property: Your Guide To Building a Down Payment and Opening the Door to Homeownership

Purchasing a home is a lengthy process from start to finish. It is a dream for many to own their own home. To set yourself up for success when you start your homeownership journey, you must plan carefully and be disciplined with your savings. To grow your savings, you must be able to adapt to how you currently live your life and make a few changes to achieve your goals. 

7 Tips On Saving For A Downpayment On a Home

Whether you are planning on buying your first home, or looking to upgrade to your dream home, saving for a down payment is the first step to home buying. A down payment of 20% or more will provide you with more options and eliminate the need for P.M.I. (Private Mortgage Insurance). Here are seven tips from Porter Bank to help you save for your down payment! 

  • Open a Savings Account: Before you start saving, you need somewhere reliable to keep this money safe! Porter Bank offers several different savings accounts, like Everyday and Elite. 
  • Consolidate or Pay Off Debt: Paying off your debt will not only better your credit score, but it will also free up funds to put towards your savings goal. Imagine taking the amount you pay monthly towards your debt, but instead you put this towards your savings. It might seem difficult to start but will help you towards your goal of a new home! 
  • Set a Timeline: Create a realistic timeline to hold yourself accountable for how much you should be saving each month. This can also help you maintain motivation as you know the sacrifices you are making will not last forever!
  • Create a Realistic Budget: After identifying your needed down-payment amount, it is time to create your budget! Look into your monthly income, and how much you spend on your “needs.” Anything that does not fall under the “needs,” category should be reviewed…see our next tip. 
  • Cut Random Spending: Random spending or impulse buying will hinder your savings growth. Paying attention to the areas of your spending where you can make cuts is important. Get rid of TV streaming services you do not use daily, eat out less, and cut-out or reduce similar expenses. Saving money can be a little uncomfortable at times, but making these sacrifices will help push you towards your home owning success! 
  • Automate Your Savings: Setting up automated transfers to move extra money into your savings account is a simple and easy way to save without even thinking about it! Contact your local Porter Bank location to talk about your automated transfer options!

By utilizing these 7 tips, you are one step closer to achieving your savings goal! Remember, the path to homeownership is a personal journey that is not always easy. Maintaining diligence, adaptability, and perseverance by combining these strategies and staying committed to your financial goals, will turn your dream of owning a home into a reality! 

Saving For a Down Payment With Porter Bank

Here at Porter Bank, we understand how each person’s financial journey is a unique and highly individualized path. With our range of savings accounts and financial expertise, Porter Bank is  committed to helping customers make informed decisions when it comes to their savings journey. If you are beginning your savings journey for a down payment for a home, let Porter Bank guide you! Contact us at any of our three locations or give us a call at 219-926-2136!