Save for a house and make budgeting easy

8 Effective on Tips How to Save for a House | A Couple’s Guide

Saving money can sometimes be more challenging than making it. Buying a home remains a big American dream and the average cost of down payment keeps rising. That’s why some younger couples are delaying their plans to buy a home. But if your combined income can do it over a specified number of years, then have conversations about how to save for a house.

8 Tips on How to Save for a House

One of the biggest challenges every couple faces is to figure out how to buy a house using a money-saving plan that works. If your circumstances are right, these tips on how to save for a house will help you raise money for a down payment.

1.Find out how much you need

Are you worried that you can’t afford the 20% down payment? Well, you can do without it since many lenders don’t require it anymore. Your good credit score and income may allow some banks to offer you a traditional mortgage loan of as low as 3%. Besides, if you qualify for a VA or USDA loan, the down payment could be 0%. Get a mortgage loan officer to help you determine the loans you qualify for and everything else.

According to valoans.com, the VA loan is sponsored by the Veterans Administration and the USDA is sponsored by the United States Department of Agriculture.

The USDA home loan is a zero down payment program that’s designed to help low-income families make homeownership possible.

2. Consider using your  retirement savings temporarily

Use Retirement Savings for House Down Payment

“Temporarily” is the keyword here. Using your retirement savings long-term wouldn’t be ideal at all. But, if you are a young couple that’s actively involved in 401(k) or IRA, using it temporarily to down payment savings could be a smart move.

3. Practice saving automatically

If you’re looking at how to save for a house without being tempted to use your retirement savings, switch to automatic saving. You can automatically transfer a particular amount from your paycheck into your savings account every week or month. It only takes contacting your bank and requesting them to automate monthly withdrawals into your separate savings account.

4. Get your debt under control

If your ultimate goal is to purchase a home, then using a huge amount of your money towards debt payment will make it difficult. Make sure you cut down any debt you have by refinancing any student loans with high-interest rates.

5. Look for a side job

Look for a side job like driving a car for uber or lyft

Consider making a quick buck to supplement your down payment savings. You can start shopping/delivering meals for a delivery service online or driving for a Uber or Lyft. Even pet sitting, walking dogs, etc., can put extra money in your pocket. Freelance opportunities can generate significant income to help you save more for a house

6. Ask for gift money

When your relatives would like to give you a present, tell them you prefer gift money for your down payment. Not everyone might buy the idea, but some will and support you to become a proud homeowner.

7. Consider Downsizing

Downsizing means cutting down your expenses to save more. This could mean keeping your romantic moments alive but on a low budget. You can limit eating out and eat home as well as take your lunch to work.

If you’re struggling to save money on a tight budget, click here for some great tips!

It’s cheaper. What about moving to a smaller apartment, selling your other family vehicle, etc.? A temporary downsize will help you save a lot for a house. After all, the best way to double your money is to fold it and put it in your pocket.

8. Recognize that you’re a team

Working together and listening to each other on how to save for a house makes you a great team. Also, consider bringing in a real estate agent to take part in the discussions. They will counterbalance your differences and help you agree and maybe bond even more in your relationship. Make it an opportunity to learn from each other plus the agent and save in love and peace.

Budget for Saving for a House

Budget for Saving a House

According to nerdwallet.com, a budget is a spending plan based on your income and expenses. I hope you’re not scared of budgeting like most people. If you’re a homeowner with money; great! It takes a budget to know exactly how to save for a house. And what do you know about budgeting in the first place? It’s a simple exercise, though!

It’s all about how much savings your monthly budget can cover in your mortgage payment plan if you can’t make an all-cash-offer.

Check out this formula on how to budget and buy a home successfully:

Potential Savings = Income – Expenses

To begin, add up all sources of income your checking account receives every month.

Paycheck 1 = $1,500
Paycheck 2 = $1,500
Freelance Work = $500
Total Monthly Income = $3,500

Then, make a list of your monthly expenses. Check out some common categories to include:

Grocery = $300
Gas & Car Insurance = $200
Rent=$1,000
Utility Bill = $150


You can make a table like this and simply deduct your total income minus your expenses:

Savings ($1,650) = Total Income ($3,500) – Total Expense ($1,850)

Once you know exactly your potential savings every month, here is  Dave Ramsey’s mortgage calculator you can use to help you determine how much you can afford.

How Much Should I Spend on a House?

How to Save for a House

The rule of thumb is, don’t spend above 28% of your monthly income. In addition, your income has to be stable enough to make regular payments.  

Using a mortgage calculator to find out the amount your income can raise every month for the down payment is the best thing to do.

These additional costs include closing fees and legal fees which amount up to 3% of the total cost of the house. Remember that once you’re done with the down payment, moving to the house will come at a cost too, plus the labor and the initial fixes.

Dave Ramsey’s thoughts on How to Save for a House

Dave Ramsey's Thoughts on How to Save for a House
Photo Credits to Daveramsey.com

Dave Ramsey, the author of seven national bestsellers, is an expert in personal money-management. When it comes to how to save for a house, he is your go-to expert for smart decisions that work.

He recommends putting at least 10-20% down for any mortgage with a 15-year fixed rate. It may seem difficult, but many like you do it successfully.

Also, Dave recommends that mortgage payment per month should be 25% of the total take-home pay. He points out that it’s essential to know how much you can afford to avoid any potential financial trouble. Interviewing real estate agents would also be a necessary step to get the right experienced expert to help you.

When should I buy a home?

If you have completed these 3 baby-steps suggested by Dave, you’ve reached the right stage to buy a house. These steps are:

1. Having your starter emergency fund savings of $1,000
2. Paying off your debts apart from the house using the debt snowball
3. Saving 3 to 6 months of fully-funded expenses in an emergency fund.

7 Baby Steps by Dave Ramsey
Photo Credits: www.everydollar.com

In addition, you should consider these factors to figure if you’re qualified to get a house:

Stable Income:

Your income should be stable and with an impressive debt-to-income ratio, as lenders consider it an important basis. Remember, your mortgage costs shouldn’t exceed 28% of your stable monthly income.

High credit score

When your credit score is as high as at least 620, you can qualify for most mortgages.

Want to improve your credit score? Check out these 10 Easy Hacks on How to Improve Your Credit Score in 30 Days.

Manageable Debt

Whether your debt is student loans or credit card debt, if you’ve already paid enough towards becoming debt-free, it’s time to invest in a home.

Enough Down Payment

Although some agents don’t require down payments anymore, having a readily-available fund could help you speed up the process of getting your dream house. Plus, it will make your monthly payment less than purchasing without a downpayment!

How to save for a down payment

Saving money for a down payment can be an intimidating process if you don’t begin with a smaller number. Decide your buying time and plan according to the given months and deadline of your goal.

Now, take your required down payment and divide it by the number of months you’ve scheduled to save.

For example, you have to save $34,000  for a down payment of a new home in 2 years. This means that you would need to save about $1,420 each month to reach your goal.

Note that if you follow the Baby Steps above, you won’t have any debts to suck away the cash you need to save for the down payment.

Final Thoughts on Saving for a House

Figuring out how to save for a house successfully isn’t a walk in the park. It takes determination and smart choices. You don’t want your hard-earned money lost in a bad investment. If you hire an experienced agent as your personal advocate, you’ll end up with two things: A dream house and your widest smile ever!

Once you’re done saving money for the down payment for a home, keep your money-saving habit alive. Buying a home insurance policy is one way to do so. Remember that homeownership involves several surprise costs, and your continuous savings account will take care of such costs.


Love Our Article? Make sure you Pin It and add to your “How to Save for a House” Board

How to Save for a House: A Couple's Guide

24 thoughts on “8 Effective on Tips How to Save for a House | A Couple’s Guide”

  1. Hi! I just wanted to ask if you ever have any problems with
    hackers? My last blog (wordpress) was hacked and I ended up losing several weeks of hard work due to
    no data backup. Do you have any methods to stop
    hackers?

  2. I actually wanted to make a small word to appreciate you for some of the great concepts you are posting at this website.
    My time consuming internet look up has now been compensated with high-quality strategies to share with my company.
    I would repeat that we readers are undoubtedly fortunate how to give a man an orgasm
    exist in a great place with so many outstanding people with helpful
    techniques. I feel truly privileged to have come across the weblog
    and look forward to some more cool minutes reading here.
    Thank you once again for a lot of things.

  3. Thank you for every one of your hard work on this site.
    My mother enjoys making time for investigation and it’s really easy to understand
    why. Most people learn all regarding the lively means you
    offer both interesting and useful solutions via your
    web site and as well as strongly encourage contribution from other ones about this concern so
    our favorite daughter is always understanding a whole lot.
    Take pleasure in the rest of the year. You are always carrying out a glorious job.[X-N-E-W-L-I-N-S-P-I-N-X]I
    am really impressed with your writing talents and also
    with the format to your blog. Is that this a paid subject matter or did you modify
    it your self? Either way keep up the excellent
    quality writing, it’s rare to look a great weblog like this one today.

    Here is my website :: sexual intercourse (http://www.meteoritegarden.com)

  4. Aw, this was a very good post. Spending some time and actual effort to create a good article…
    but what can I say… I procrastinate a lot and never manage to get anything done.

    Feel free to visit my webpage belly fat

  5. Howdy! This article couldn’t be written any better!

    Reading through this post reminds me of my previous roommate!
    He continually kept talking about this. I am going to forward this information to him.
    Fairly certain he will have a great read. Many thanks
    for sharing!

    Feel free to visit my blog post … eczema on feet (http://forum.m2clasic.ro)

  6. I got this web page from my buddy who shared with me regarding this web page and now this
    time I am visiting this web page and reading very informative articles at
    this time.

    Feel free to visit my web page Ronnie

  7. May I just say what a comfort to uncover someone that really knows what they are discussing on the internet.

    You definitely understand how to bring an issue to light and make it important.

    More and more people should read this and
    understand this side of your story. It’s surprising
    you aren’t more popular since you certainly possess the gift.

  8. Simply desire to say your article is as surprising.

    The clarity good sex in marriage your post
    is just excellent and i could assume you are an expert on this subject.
    Well with your permission allow me to grab your feed to keep
    updated with forthcoming post. Thanks a million and
    please keep up the enjoyable work.

  9. Hi there this is somewhat of off topic but I was wondering if blogs use
    WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding know-how so I wanted to get advice
    from someone with experience. Any help would be greatly appreciated!

  10. Just desire to say your article is as surprising. The clarity in your post is just nice and i could assume you’re
    an expert on this subject. Fine with your permission allow me to grab your feed to keep up to date with forthcoming
    post. Thanks a million and please keep up the enjoyable work.

  11. This design is spectacular! You obviously know how to keep a reader entertained.
    Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Great job.

    I really enjoyed what you had to say, and
    more than that, how you presented it. Too cool!

  12. Hey there would you mind letting me know which hosting company you’re utilizing?
    I’ve loaded your blog in 3 completely different browsers and I must say this
    blog loads a lot quicker then most. Can you recommend a good
    hosting provider at a honest price? Thanks, I appreciate it!

  13. You can definitely see your enthusiasm in the work you write. The world hopes for more passionate writers like you who aren’t afraid to say how they believe. All the time go after your heart. “In America, through pressure of conformity, there is freedom of choice, but nothing to choose from.” by Peter Ustinov.

Leave a Comment

Your email address will not be published.

Pin It on Pinterest

Scroll to Top
How to make a savings plan for couples

Do you find it hard to save money with your partner?

Download of FREE E-Book and see how you can save up to $20,000 in just 12 months!