Saving for a down payment on a West Knoxville home can be difficult when you’re having to keep up with your rent, living expenses, and other daily living expenses. If you’re planning on buying a West Knoxville in the near future, here is how to save for a down payment on a West Knoxville home.
Reduce Your Monthly Expenses
A great place to start when saving up for a West Knoxville home is to look at your monthly expenses. Look and see if there are any possible cuts that you can make. Are you able to cut down on you cable or cell phone bill? Do you have other monthly extras that you don’t necessarily need. Use any savings that you cut and put it towards your monthly down payment.
Cut Down On Extra Spending
Dinners out, shopping sprees, among other things can add up to major monthly expenses. Look and see how much you spend monthly on extra items. Set yourself a budget and stick to it each month. A few monthly dinners out can actually add up to quite a bit.
Take A Look At Your IRA
First time buyers are actually allowed to take out up to $10,000 from their IRA to use for a down payment without any penalties. If you’ve been stashing money away in your IRA, consider using part of it towards a down payment to buy a West Knoxville home. Check out the complete list of requirements on the IRS Website.
Find An Extra Source Of Income
If you think it could be difficult to make any major cuts to your current budget, consider ways that you could pick up some extra income. Are you able to sell some old items on Ebay? Could you make some money on a garage sale? Can you pick up some extra hours at work? It may be easier than you think to find some make some extra income.
Look Into Your Down Payment Requirements
Many West Knoxville buyers aren’t fully aware of how much money they will need to put down on a home. Keep in mind, though, it is possible to buy a West Knoxville home with no money down. With the help of a THDA grant, you can receive a grant to help pay for your closing costs or your down payment. A USDA Rural Development loan is also an option. A USDA loan allows 100% financing for homes in rural areas. FHA loans require as little as 3.5% down and conventional loans require as little as 5% or 10% down. Talk to a loan officer to see what your options may be.
Are you thinking about buying a West Knoxville home this year? Please let us know if there is anyway that Knoxville Home Team can assist you. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at [email protected]. Also, be sure to check out our West Knoxville Home Search Page.