The American dream is to buy a house in a friendly and welcoming neighborhood. Be a part of a community to raise kids, make friends, and build long-lasting relationships.
On the way to accomplishing the American dream, a typical step for first-time homebuyers is to visit the bank and learn that they need to have a downpayment to start the process of buying a home. Some have already saved for a downpayment or have access to funds. It’s also common for prospective homebuyers to learn that they will be better off in the process of mortgage qualification with a larger downpayment.
To save more for a downpayment and increase the chances of qualifying for a mortgage, individuals and families need to keep up with current expenses while adding to a savings account to save for a downpayment. For example, pay credit card payments, car loans, and student loans.
On average, it takes an estimated 51 months, or 4.25 years, for an American household to save for a 20 percent down payment (link). With the finish line so far in the distance, it’s tough to make sense of what each deposit means for the final goal, the house downpayment. It can take a while to save for a downpayment.
To keep up with expenses and save, the aspiring homebuyers need to create an ideal budget of how much money needs to go into expenses and necessities, wants, and toward debt and savings. More than that, future homebuyers need to stick to a plan.
The challenge is how do they convert their budgeting into daily habits and actions and stay motivated on their journey to save for their dream home?
We created Savings Jar to help first-time homebuyers to accomplish the dream of homeownership. With Savings Jar, first-time homebuyers can connect with a certified financial coach to guide them to create a money plan that eliminates unnecessary interest payments and creates saving opportunities.
Along with the certified financial coach, Savings Jar individuals and families to a community of like-minded savers to help them meet their financial goals.