The best method to achieve so many financial goals is simple, but that doesn’t mean it’s easy. When you’re saving up for a down payment on a home, you should do just that: Save.
It will take some time to reach your goal, but if you establish savings as a habit, homeownership is achievable. A great way to make sure you stick to the plan is to schedule automatic transfers from your checking account to your savings account each paycheck.
To spur your progress on at a faster clip, go through your possessions, evaluating each one. If it doesn’t hold significant sentimental value and you haven’t used it in the recent past, sell it. Put the money directly in your savings account. Not only will you be able to purchase a home sooner, but you may also spend less money during the move, as you won’t have to transport items you don’t really need.
Proper says you should document any sale that amounts to 50 percent or more of your regular monthly income, though. For example, if your paycheck is normally $5,000 per month and you sell an item for more than $2,500, you will need some type of sales agreement signed by both parties.
“It doesn’t need to be drawn by an attorney, but we have to document anything that is considered a large deposit,” he says. “A lot of it is looking to make sure there were no loans issued. Any liabilities in your debt-to-income ratio can end with restrictions on how much you can borrow.”