One of the biggest reasons we hear from our clients, as to why they continue to rent, instead of buying, is that they just cant seem to save money for a down payment. In fact, many people are misinformed as to exactly how much money is needed to buy a home in Santa Clarita. Twenty percent down isn’t the standard any longer, with some options as little as 3% down. Below we’ve put together some tips on how you can start saving money, and transition from renter to homeowner.

1. Prioritize Saving Money- I know this seems like a given. But, this is actually quite hard for some people. Every person should categorize their purchases into wants vs. needs and make saving for a down payment a priority at the top of their list. By cutting back on the daily coffee habit, or skipping Happy Hour you will see how quickly you can put away money.
2. Automate Saving Deposits- Set up automatic deposits from your Paycheck or Bank Account into a separate savings account. Lenders want to see you are financially responsible and capable of living on a budget with your payment being a priority.
3. Build A Side Business– Are you really handy at making furniture? Do all the moms at Pre-K love that necklace you made? Great! Put your skills or hobbies to use and create a small side business. It doesn’t have to take up all your time. But, if you love what you do, and it can make you a little bit of money too, it will be more rewarding seeing your small passion amount to such a large reward.
4. Live With A Roommate- Living with a roommate isn’t always the easiest thing, but it can save you some serious cash. If you have an extra room in your apartment or house, considering renting it out. Saving a couple hundred dollars a month gets you that much closer to a down payment.
5. Set Aside Extra Money- We all love unexpected income. Whether its hitting a jackpot in Vegas, or receiving a trust from your parents you didn’t know you had, saving this unexpected money rather than splurging on lets say a new car, is a much smarter and faster way to save money.

These are just a few small things you can do to help save money for a down payment. We highly suggest talking to a local lender first when beginning the home buying process. By knowing how much you qualify for, what programs you may take advantage of, and how much money you will need to bring to the table, you will know exactly where to start, and how long it will take. Knowledge is power. If would like to take the next step into homeownership you can contact us here, or give us a call at 661-373-2374.