Whether you want to chalk it up to spring-cleaning, practicing KonMari, or doing an early pre-move declutter, going through your home and hosting a yard or garage sale can be a great way to spare yourself the effort later — and grab some extra cash today.
If an old-fashioned yard sale isn’t practical, you can achieve similar results by selling items on Craigslist or Facebook Marketplace.
6. Pay down your debt (maybe)
It may seem counterintuitive to shovel cash toward other debt while actively saving for a home, but depending on the type of debt, it may be worth your while to briefly reprioritize.
It can be valuable to sit down with a financial advisor or a mortgage lender to discuss your financial situation in depth.
While there are many different types of consumer debt, some debt is seen as “better” than others. Student loans, for example, are not interpreted as egregiously as credit card debt, and medical debt may be looked at differently than an auto loan.
A financial professional can review your credit history and your current accounts to help you determine what may be hindering (or helping) your ability to qualify for a mortgage and provide advice on how to best move forward.
Not sure where to start? Try the local branch of your bank or credit union. Most banks have in-house financial advisors who are happy to help members, and if your needs are beyond their scope, they can at least point you in the right direction.
7. Leverage down payment programs (and embrace minimums)
There are more down payment assistance programs available than you might think. Specific programs can vary by state, but some of them will even match your funds up to 10%, which can provide a big boost to be able to purchase a home sooner than expected.
With an FHA loan, you can potentially buy a house for as little as 3.5% down. If this seems like too little to be a wise move, think again.
“Leverage that FHA down payment,” says Jennifer Seeno Tucker, a top agent in Elmont, New York. “It’s okay to purchase that way if it gets you into a home that you need to be in. It’s a way to start building wealth; it’s the first step.”
8. Channel windfalls accordingly
This may be obvious, but funneling unexpected or large chunks of change into savings is definitely a smart move along your homebuying journey.
Windfalls can include workplace bonuses, birthday or holiday money, tax refunds — anything that is above and beyond your standard earnings and side hustle income. If you need a little wiggle room to treat yourself, take 10% and use it for whatever you want, but make sure that the remaining 90% goes toward your future home.
9. Weigh your retirement options
There’s an old saying about how the best time to start saving for retirement was yesterday, but the second-best time is today. This is true thanks to the beauty of compound interest — the longer money has an opportunity to gain interest, the more of it you can gain.
So, while we’re not going to tell you to put your retirement contributions on hold, we will recommend adding this topic to your list of talking points with your financial advisor. If there’s a short-term option that can help you maximize your home savings without damaging your retirement investments, there’s no harm in keeping an open mind.
