downpayment

8 Tips to save your house down payment

Save your down payment and achieve your dream of having your own home in CDMX.

When you are thinking about investing in a new home, saving the down payment is the first step. We share some recommendations to achieve it.

Why is it better to have a good down payment?

In this way the debt is lower, they have greater facilities when acquiring a loan. Generally, down payments are between 20% and 30% of the total value of the property.

Living in a world where shopping and ordering online is so easy, it presents difficulties when it comes to saving. But if your desire is to have your own home, you will have no alternative.

These are some tips to save your house down payment:

  • The first thing you should take into account when you go to buy a home is to be aware of your finances: how much you earn, how much you spend, how much you could eventually save and how much you could get into debt.
  • After defining your finances, you must determine the monthly amount that you could allocate to save. To start saving, financial institutions recommend allocating a minimum of 10% of income (30% if possible) for savings, which should increase little by little.
  • For people who live with a partner and have children, it is considered that the ideal distribution should be 70% for expenses and 30% for savings. Even if your lifestyle allows it, you could put more money into your savings.
  • Face all your debts and keep your credit cards up to date.
  • Avoid over-indebtedness. This is a classic and wise recommendation: do not spend more than you can. Take into account the limits of your budget and avoid using more credits until you have completely paid off the ones you have.
  • Make the difference between a want and a need; this way you will be able to avoid unnecessary purchases and use, on the contrary, those resources to increase your savings.
  • Add all your stable income to your savings plan, avoid having a temporary or uncertain income.
  • Remember that in addition to having the down payment, you must consider the additional expenses that are generated when buying a property such as deed costs and notarial expenses. If you do not have money to cover them, you must deduct them from the available ones and have less money for your down payment.

Keep in mind

1. Review your financial situation

Take a pencil and paper to do the math. First, identify how much money you get each month and what percentage of it you spend on fixed expenses such as rent, transportation, food, and debts. The result will give you an idea of ​​how much you can pay monthly towards the payment of the house.

In case you are going to buy in the company, add the income of both and do the same operation. By having a higher monthly payment capacity, they will be able to acquire a more expensive property.

2. The sooner the better

Stop making excuses such as that it is not the time, what better with next month’s bonus, than after December or similar pretexts, better start planning your savings method from now on.

The faster you start saving for the down payment, the sooner you can apply for your mortgage loan.

3. Pay off your debts

Before taking the big step of buying a home, we recommend that you pay off all the debts that you currently have. With a clean credit history, it will be easier to acquire a mortgage.

4. Avoid impulse purchases

Before making a purchase, think about whether it is really necessary. Many times the salary runs out without knowing what we are spending it on, so you must be more aware when buying.

5. Every weight counts

Buy a piggy bank and keep the coins and small bills there. In the end, you will have saved more than you can imagine.

6. Economic practices

Small changes in your finances can make a big difference when it comes to saving.

  • Avoid using taxis and choose to transport yourself on buses.
  • Cook at home instead of eating out or asking for addresses.
  • Don’t waste energy, water and/or gas.
  • Dry your clothes in the sun instead of using the dryer.
  • It uses led bulbs and low consumption appliances.

Remember to be clear about your goal and not let a distraction take you away from it. When you are ready to look for your future home, at La haus we help you find it and make sure it is exactly what you and your family are looking for.

 

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