Time to get serious about saving for a down payment for a house.
You will need more than this cute house fund jar to save for your down payment. If you are getting serious about saving for a down payment or a home improvement, here are 6 tips to start your house fund.
This is a simple first step but a necessary one. Set up a new account with your current banking institution and make sure it is linked to your main spending account.
Even if it is $20 a month, set up a recurring transfer from your main spending account to your new house fund bank account. You can increase this over time or cancel it for a month if you need the extra money but setting it up will ensure that you make a regular contribution to your house fund.
Sites like Mint or LearnVest are great FREE resources that will help you budget your money and give you advice along the way. Simply connect your bank accounts and they will start giving you advice on ways to save. Most importantly it will give you a visual on where you spend your money every month.
Mint will help you determine how much to save and how long it will take you to get there. Link your new house fund bank account and it will track your progress along the way and even email you each month to tell you how you are doing. Pretty sobering but helpful tool.
Christmas, birthdays, graduation, baby shower, wedding presents are all occasions when your family and friends rack their brains thinking about what kind of gift they can get you. Set up a donation site where they can gift you money toward your house savings fund. We think our site is the best place to start this donation site, which we like to call a Nest.
[Set up a FREE Nest Now >]
Saving for your house is important but once you get the funds you will also need to qualify for a loan. So check your credit score and see how you are doing. Credit scores range from 579 or less (bad) to 800 (best).
In general terms here are some ranges to keep in mind, 580-669 is ok 670-739 is pretty good 740-799 is good and 800+ is incredible. The better credit score the better interest rates you will be able to get when you are ready to take out a loan.