Owning a home is one of life’s most significant milestones and probably the largest purchase you’ll ever make. And while you can take out a mortgage to finance the purchase, you’ll have to put in at least some down payment – and that’s not the only thing you need to save for. Having said that, let’s dig into some ways to save up and buy a home in Grande Prairie.
Determine How Much You Need
Before plunging in, you should first calculate how much money you’ll need to save and buy a home in Grande Prairie. For instance, conventional loans often require a down payment of 5-20% of the home’s value. Besides that, you need to factor in the closing costs, ranging from 2% to 5% of the home’s purchasing price. On top of that, experts recommend setting aside cash reserves to cover at least three months of living expenses.
Trim Luxuries and Routine Expenses
When saving up for a home, it’s natural to be wary of big purchases of expensive clothes and fancy vacations. But watch out for the little stuff too. Consider cutting down or eliminating ongoing monthly expenses. For instance, get a cheaper cell phone plan, cut the cord on cable television, quit gym membership, or skip fancy outdoor dinners.
Cutting back and setting money aside is crucial in saving up for a house in Grande Prairie, but taking a portion out of your paycheck can feel like it’s cramping your style. So, try apps that use technology to automatically save a daily amount (small enough that it won’t hurt your budget, and you may not even notice it). There are also apps that round up your purchases to the nearest dollar and put the difference in an investment account.
Get a Side Hustle
With the gig economy expanding exponentially, there are ways to make a quick buck and help save up for a house. For instance, consider spending a few hours a week shopping or delivering meals via online delivery services, pet sitting, walking dogs, or driving for a rideshare service. And thanks to technology, there are several freelance opportunities that require minimal qualifications and make it easy to earn extra money you can save for a house.
Hold Off on Your Retirement Savings Temporarily
You can hold off on your retirement savings and put that cash towards your down payment. Note that you shouldn’t borrow from or cash out your retirement account to speed up your down payment savings. That’s because that can attract taxes and early withdrawal penalties.
Need Help Buying a Home in Grande Prairie? Call the Experts!
If your goal is to own a home in Grande Prairie, follow the above-mentioned tips to achieve your dream. Ultimately, it’s wise to speak to a real estate professional, and our real estate pros are here to help! With our unparalleled experience and skills, we’ll offer you practical insight on ways to save up for a home and guide your homebuying journey. Call us today!