David and Libby Koch’s savings mantras for first home buyers

When buying your first home, most soon-to-be homeowners focus on how much they need to spend. But the truth is, you also need to consider when to do the purchase.

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Buying your first home

Normally, purchasing a new home involves paying for the down payment. What is down payment? It is basically the money you bring to the closing table when purchasing a house. You may borrow money from the bank in the form of a home loan or mortgage, but a portion of the total cost must come directly from you.

Down payment acts as an insurance of sorts for the person or institution that lends you. When you hand over money from your own account, you’re officially invested. You’re more likely to make good on your mortgage payments month after month and year after year. Banks like working with people like you.

If you think that the down payment asked from you is that big and overwhelms you, you need to decide when you need to buy the home you want. You need to divide up your needed down payment by the number of months you need to save. For instance, if you need $35,000 to cover a down payment and all closing costs of buying a new home, then you need to save for 2 years for about $1,000 each month to hit your goal.

Meanwhile, if you think that the $1,000 monthly savings amount is too high, that’s fine. Give yourself a little more time to save up and be on the lookout for creative ways to save.

Saving for a home can be easier if you are able to cut your luxuries. You need to cut out your expensive cloths, furnishings, gadgets and jewelleries. You need to think of saving every dollar and look towards your long term goal – buy your dream home.

Buying a home can be easier and faster if you have the right money habits. Check out this article about David and Libby Koch’s saving mantras: https://www.perthnow.com.au/lifestyle/personal-finance/david-and-libby-kochs-savings-mantras-for-first-home-buyers-ng-f1cb0691790e14321f5f55f54eb106e4