Prepare yourself financially
To maximize the cash you can put toward your home purchase, make saving a priority. If you set realistic goals and adhere to a few key principles, you can pull together the cash you need.
- Pay yourself first: Figure out how much you need to put away each month in order to reach your savings goal, and set that aside before attending to other expenses.
- Avoid large purchases: Before buying big-ticket items, ask yourself how it will affect your home purchase. If a non-essential item puts your goal at risk, put off buying it until after you’ve bought your home.
- Maintain good credit: Pay off credit card balances instead of opting to pay the minimum. Avoid opening new lines of credit, leasing big-ticket items, and applying for credit based programs.
- Consider selling your current home: How much you profit from your home sale depends mainly on how much you’ve built up your equity.