How To Fulfill Your Dream: Tips For Saving Money To Buy A House

August 24, 2021 | Louis Tully

saving money to buy a house

If you want to start saving money to buy a house, make sure to set up an account for funding this dream. You may also want to consider moving to a cheaper place, cutting out bad spending habits, and picking up a side hustle.

A house is, possibly, the largest purchase you’ll ever make in your life. No wonder saving enough to buy something that big can feel like a big task. 

Thankfully, there are a few effective tips that you can follow that will help you start saving money to buy a house.

Things You Can Start To Start Saving Money To Buy A House

Break Down The Costs

First things first, you have to understand how much you may pay and when will your payments be due. In a nutshell, you can start saving money to buy a house as soon as possible, and it will all begin with the down payment.

Expect it to be anywhere between 2% and 6% of the purchase price (sometimes – even more).

The closing costs that are required to close the deal range from 2% to 5%. And don’t forget to take the moving expenses into consideration as well.

Set Up An Account For Buying Your Future Home

One of the most important tips for saving money to buy a house is setting up a separate house-buying account.

You can go for an investment account with an automatic withdrawal (a certain amount will be automatically transferred once you get your paycheck). This way, you can make sure that your payments are always done on time. You also have the chance to grow the funds that exist in this account through investment, which will help you with your future payments.

Move To A Cheaper Place

You can move to a less expensive rental or find a roommate to split the costs while you work on saving more money to buy your future home. If you are single, you can consider living with your friends or family for a year or so, which should save you a big sum of money.

Even a $200 reduction (that’s $2,400 per year) will become a great step forward in your journey to saving money to buy a house. 

invest windfall money

Invest Your Windfalls

Whenever you get an unexpected sum of money (like a tax refund or a bonus at work), try not to splurge. Instead, put all the cash in the house-buying account.

Tip: consider an account that earns interest or, as we mentioned, gets your money invested. In such a way, your money will grow with time.

Cut Out A Bad Habit

This is a great tip for saving money to buy a house as it stimulates you to make positive life shifts. 

Quitting smoking will help you save hundreds (sometimes, even thousands) of dollars per year. You can also cut out impulse buying and getting takeout. Prepare your meals (and coffee!) at home.

Pick Up A Side Hustle

There are plenty of cool ways to earn extra cash. Complete various individual gigs for clients and put away everything that you manage to earn from your side hustle.

You can try driving for a ridesharing company (Uber and Lyft allow you to work as much as you like) or walking someone else’s pets. Pet sitting is also a simple way to make some extra money on the side.

Another idea for saving money to buy a house is testing apps and sites whenever you have some spare time. To get started, simply sign up with a testing company (like UserTesting or Testbirds).

How To Protect Your Fund For Buying A House

Imagine you already have a house-buying account, and you’re close to reaching your first milestone. But then an emergency happens, should you reach into this fund to pay for the emergency expenses? Well, you should not have to say goodbye to your dream every time trouble comes your way.

When you don’t want to use the money that you have been saving, you might want to consider car title loans instead.

car title loans

What Are Car Title Loans And How To Get One?

Car title loans are a type of loan that allows you to borrow a sum of money against your car title. Getting a title loan is a fast and easy process. With Tennessee Title Loans, Inc., it might take you as little as 30 minutes. All you would have to do is:

  • Fill out the car title loans online form on Tennessee Title Loans, Inc.
  • Wait for a friendly loan representative to call you.
  • Drive your vehicle to the store of your choice with your driver’s license or state-issued ID and a lien-free title to the vehicle.
  • Let the loan representative inspect your vehicle and examine your documents.
  • If you get approved, you might receive a loan (that’s anywhere between $300 and $2.500, depending on your car value) the same day or the following banking day.

Saving For Your Future Home Even Through Emergencies

Have you already started saving money to buy a house? The chances are that there may be some bumps along the road, but if you take advantage of the tips mentioned above, you’ll achieve your goal a lot faster.

Don’t let any emergencies stand between you and your dream. This is when you can choose to go for car title loans. Submit an online form for Tennessee title loans from today and continue saving for your dream home!