Saving Tips for Buying Your First Home

If you had to save up for something you wanted as a kid, you might remember putting money aside and maybe adults kicking in a little to get you across the finish line. It's not much different when it comes to buying your first home. It may seem hard, but we've put together a few ways to get you your way to homeownership.

Clear away the financial clutter

Get serious about saving up for a down payment by clearing the clutter of unwanted subscriptions and needless expenses. It's also an opportunity to evaluate your spending boundaries. This means making intentional choices that align with your goals to avoid overspending. Check out this infographic for inspiration.

Imagine what home costs look like realistically

Come up with a rough idea of what your future mortgage payment, homeowners insurance and property tax amounts would be. Then, for the next month or two, set that amount aside and see if that works for you. This is especially important if you're worried about spreading yourself thin and coming up short after buying a home. Our Saving for a Goal Calculator can also help you be realistic about saving and inspire you to look for more ways to save money and build your home fund.

Less spent now means more for you later

Living small now means you can save more to give you better options when you search for your first home. For example, while renting, choose a place that's less than you need because a studio-sized apartment can be nearly 30% cheaper than a one-bedroom apartment. Smaller also means it's expensive to cool, heat, and furnish. This alone could result in several hundred dollars a month saved to go right into your home savings account. Pro tip: Think the same way about the vehicle choice you make.

Set it and forget it

Now is the time to set up a dedicated savings account that you name something like First Home Account. Consider this a one-way trip—money only goes in, not out. We can help you set up a Special Share Savings Account for this purpose.

Ditch the gift list

Getting married soon? Skip the gift registry and let guests know that a Down Payment Gift Fund contribution would be appreciated instead. 20% of newlyweds use this option today. Talk to us about setting up such an account so you have a paper trail that home lenders inevitably want to see before funding a home loan. This also applies if your parents plan to help you with a gift for a down payment. 

Don't be shy

New homeowners may not know what they don't know—but we can help you understand. Reach out to our Home Loan Specialists now, well before starting any home search to understand where you're at and what you'll need to buy a home. Our team has lots of home financing knowledge and resources to help you reach your goals.

Another way we can help is with our First Home Mortgage Loan, a special program built with you in mind. If you're looking to buy a home in Ventura County, this program lets you buy with no down payment and can be used to purchase a single family home, condo, or townhouse.

Want to learn more? Check out these home buying resources:

• Should you buy or rent? How much can you afford? Check out these Mortgage Calculators
• Here's what you should know as a first-time homebuyer
• Online Course: Buying a home and understanding mortgages