How Can A First Time Home Buyer Save Money For Their Home Purchase Mortgage Deposit?

So, you are a first-time home buyer or trying to become one that is… It’s the American dream to own your own home, and many have pride in ownership once they buy a home, but its not cheap! Buying a new home is one of the biggest purchases of one’s lifetime, so you better plan this out from the start to avoid living in what’s called house rich and cash poor, or even worse, being at risk of losing the house to foreclosure since you cannot afford the house!

First you have to assure that you have a steady job with a solid income. If you feel you might lose your job in the near future, DONT BUY A HOUSE! Wait until the timing is there, and you have money saved not only for the deposit and closing costs, but also in the form of an emergency fund. One of the hard things to accomplish when buying a house is saving up money for the deposit which leads us to this question:

Question: How Can A First Time Home Buyer Save Money For Their Home Purchase Mortgage Deposit?

Answer #1: Build credit and save your money by applying for a credit builder account.

CreditCardBroker.com markets several credit builder accounts/loans that are perfect for those that are looking to not only build credit but save money for a home purchase deposit! This account is a secured consumer installment loan and also a savings account or even a cd. During the life of the account, you will make payments to the bank, and yes, you will pay interest, BUT you will also build a credit history AND the products helps you save your money!

The typical process for a credit builder account is: 1) Apply for the credit builder account. 2) Pay off the account according to the terms and conditions which will dictate interest rates and payoff timeframe and payment amounts. For each payment you make, you will save money and your payments help you build credit 3) At the end of the program, you can unlock your account and access the money you saved (minus any interest or fees paid)

If you are interested in applying for a credit builder account you can review and apply for two of them here:

The two credit builder account options above are some newer solutions that were not available even a few years ago. In the past, the best option was either to simply save money OR to improve your credit and build credit with a secured credit card offer (another great option to build credit), other shopping type cards, or to hire a credit repair company to help advise on how to repair your credit if damaged. The great thing about a credit builder account is you do not have to purchase goods or services to build credit that would actually put you in more debt! Instead, with a CBA, you will actually save money in an account and when the program is completed, you have access to the money! (Minus interest and fees) Do this long enough and you can use some of this as a down payment to purchase your new home! Now, you can certainly just save money on your home without a credit builder account, but if you also want another way to help build credit, the CBA will help you accomplish that as long as you make all your payments on time to the bank!

There are of course other options on how to get money for your home purchase deposit.

Answer#2: The most obvious answer is to simply work hard, take on a second job, get overtime pay etc. That works for some people who might have higher incomes, but for lower income people, it still might be hard to save money as bills keep adding up. But working hard will be easy it you truly have a dream to buy a home of your own.

Answer #3: Be lucky enough to inherit money or receive a gift from a family member. Now we can’t plan when that will happen, but receiving a gift or inheritance might be the perfect time to start your home search, since you will now have money for a deposit and also for closing costs!

Answer #4,5,6,7…..

We can go on and on with different ideas on how to save money for a deposit for your first home. Start a business, knock on doors and provide services, rob a bank (just kidding…) etc.

Before you attempt to buy the home, just be sure you can afford the monthly payments for the house, insurance, and taxes. Aside from that, there are other expenses you will need to worry about when buying the home such as closing costs to pay attorneys, mortgage fees and other closing fees, insurances, state taxes fees, etc. Then when you own the home, don’t forget you will have maintenance expenses, bills for all your utilities (phone, cable, water, sewer, gas, oil etc) and its smart to have an emergency fund for unexpected repairs such as a furnace brake down, or a tree that fell down, etc.

So, in a nutshell, in today’s competitive real estate market, you really need to have a deposit saved, a steady job, and good credit to buy a house. Don’t rush into buying one if you cannot afford one. Credit Builder Accounts are just one of many ways to help you build credit and save money. Thank you for visiting CreditCardBroker.com and reading our article.

To apply for a credit builder account CLICK HERE:

Become a partner with CreditCardBroker.com and market our Credit Builder Accounts and other credit related products today! CLICK HERE

*Credit Builder Accounts & Certificates of Deposit made/held by Lead Bank, Sunrise Banks, N.A., SouthState Bank, N.A. each Member FDIC. Subject to credit approval.