Saving for a mortgage deposit is an arduous process and can take many years until you’ve achieved what you need. However, if you save smart and go about things in the right way, your dream of owning a home might well be a possibility. Having your own property is so worth the hassle; every time you spend money on it you’re investing in your future, and you’re not stuck paying rent each month which is essentially ‘dead money’ since once it’s gone, it’s gone. If you want the security of your very own home, here are some of the ways you can boost your savings or reach your target that bit quicker.
Put Your Money Into a High-Interest Savings Account
While you’re saving, your money should be working as hard as possible. Putting it in a high-interest savings account is the best way to go about this. Any extra money you earn in this way will be completely hassle-free on your part, and even if it’s just a little it all helps especially if you don’t have to lift a finger in the process. There are lots of different accounts and deals on the market so always shop around; it might well be with a bank.
Consider an FHA Loan
For most mortgages, you need ten to twenty percent of the value of the home you want to put down as a deposit. However, have you considered that you might be eligible for an FHA loan? In this case, you’re able to buy a property with as little as 3.5% deposit. The great thing is even if you have a low credit score or a less than perfect borrowing history, you may be able to get accepted. This means even if you previously thought buying your own home was impossible due to the high deposit, you can now.
Sell Things You Don’t Need
Most houses have hundreds, sometimes even thousands in unused items. This can be a big chunk towards your deposit! Old technology like out of date phones and laptops might not seem all that valuable, but there are many companies online who will take them off your hands and give you cash. Clothes and general odds and ends can all be sold at boot fairs or listed on classified sites. Craigslist and eBay are two to consider. Have a rummage in the attic too; you might uncover some antiques or a valuable item which you have no use for. Rather that be spent on going towards your house! Old jewelry is another way to raise some additional money, you could go to a jeweler, antique shop or use a site online that buys scrap gold or broken jewelry if what you have isn’t in great condition.
Cutting back on luxuries, saving hard and using these tips and tricks may mean you could finally get a foot up onto the property ladder. It’s one of the best things you will do in your adult life, so if you’re able to make it possible then go for it!