Coming up with the funds for a down payment on a new home may seem overwhelming at first, but it is possible by developing a solid plan and sticking with it.

With patience, diligence, and discipline, you can come up with the money you’ll need at closing time. Determine how much you need to save, develop a plan, and then stick with it. You’ll soon be planning your move-in.

Do Your Homework First!

The first step is figuring out how much money you need to save for a down payment. You might want to meet with a mortgage loan officer to look at your finances, determine your price range, and discuss the loans you might qualify for. A lot of loans do not require a 20% down payment — and special programs for first-time buyers, veterans and more can help a lot. In fact, CommonWealth One has a 0% down option through our Member Advantage Mortgage program.

We recommend that you sign up for our upcoming Home Buying 101 webinar at noon on Wednesday, Sept. 20. Signing up is free and easy through cofcu.org/events and you can get a lot of your questions answered!

After you know how much you'll need for your down payment, you can start looking at your budget.

Look for all the places you can save! Saving for a down payment when you already have a stack of regular monthly bills can seem daunting at first. But take a closer look at your budget. You might be surprised at the places where you can save a little each month. It could be as simple as cooking at home more often instead of going out to eat. Figure out all the areas where you can save and you might find the money adds up quickly.

Here are a few strategies and ideas you can use:

Establish a savings account just for your down payment. Create a dedicated savings account and arrange for a portion of your direct deposit to be automatically directed into it each pay period. At CommonWealth One, we provide club accounts that can be easily opened and set up for automated transfers, ensuring a consistent and hassle-free process of building your down payment fund. By doing so, you’ll be less tempted to spend that money on other purchases and you’ll consistently save for your down payment.

Explore an extra job. Does your schedule afford a few extra hours each week to pick up some cash on the side? If so, think about ways you can earn a little additional money on top of what you’re already saving. Whether it’s freelancing, driving for a ridesharing app, or working at a part-time gig on the weekends, you might be able to boost your savings with an extra job. Be disciplined with the money you earn and make sure you deposit those hard-earned dollars into your savings account.

Let that vacation wait. Everyone likes to get away, but vacations cost money. Take a temporary holiday from vacations while you save for your new home. You can still find plenty of fun things to do in your local area or plan a day trip to a destination within driving distance. (Look up staycations in your city for ideas on how to relax and recharge at home or nearby on a budget!)

Attack your debt. Having debt not only affects how much you can save each month, it can also affect the amount of money you can borrow for your home purchase. If you have credit card balances, pay those down as quickly as possible. Explore your options for refinancing student loans at a lower interest rate.

Ask for cash instead of gifts. When the next birthday or holiday comes around, don’t be shy if family or friends ask what gift you want. Instead of the latest gadget, ask them for cash for your down payment. The gift-giver will feel satisfaction helping you with such an important purchase, and you will be that much closer to making your new home a reality.

Keep an eye on the job market. Finding a job that pays you more can accelerate the pace of your savings. Compare what you earn in your current job with similar positions in your region. Ask for a raise from your employer if you feel you deserve it, or consider opportunities with other companies. Many factors affect a job change, so consider this option carefully. It doesn’t hurt to see what other roles might be a good fit for you and your budget.

Consistency is the key to saving the money you need for a down payment. By following these tips, you’ll quickly develop habits that will help you put money aside on a regular basis. The payoff will come soon enough — when you move into your new home!

Remember, CommonWealth One is here for you, for life — through all your purchases. Be sure to talk to us about how to get the lowest possible rate on your mortgage — or on any other loan you need. Happy House Hunting!