Bank of New Hampshire Offers 6 Tips for Saving for Your Down Payment
Laconia, New Hampshire – June 24, 2015 – In recognition of American Housing Month, Bank of New Hampshire is offering tips to help consumers prepare for one of the first steps in the home buying process – saving for a down payment. Before transitioning from renter to home owner, potential buyers must typically save between 5 to 20 percent of the home’s value for the down payment
“Saving money for a down payment can be a challenge. Organizing your finances is the first step on the journey to owning your dream home,” said Thomas Drouin, SVP – Chief Retail Lending & Operations Officer for Bank of New Hampshire. Bank of New Hampshire suggests the following tips to help save for a down payment:
- Develop a budget & timeline. Start by determining how much you’ll need for a down payment. Create a budget and calculate how much you can realistically save each month – that will help you gauge when you’ll be ready to transition from renter to homeowner.
- Establish a separate savings account. Set up a separate savings account exclusively for your down payment and make your monthly contributions automatic. By keeping this money separate, you’ll be less likely to tap into it when you’re tight on cash.
- Shop around to reduce major monthly expenses. It’s a good idea to check rates for your car insurance, renter’s insurance, health insurance, cable, internet or cell phone plan. There may be deals or promotions available that allow you to save hundreds of dollars by adjusting your contracts
- Monitor your spending. With online banking, keeping an eye on your spending is easier than ever. Track where most of your discretionary income is going. Identify areas where you could cut back (e.g. nice meals out, vacations, etc.) and instead put that money into savings.
- Look into state and local home-buying programs. Many states, counties and local governments operate programs for first-time homebuyers. Some programs offer housing discounts, while others provide down payment loans or grants.
- Celebrate savings milestones. Saving enough for a down payment can be daunting. To avoid getting discouraged, break it up into smaller goals and reward yourself when you reach each one. If you need to save $30,000 total, consider treating yourself to a nice meal every $5,000 saved. This will help you stay motivated throughout the process.
Bank of New Hampshire, founded in 1831, provides deposit, lending and wealth management products and services to families and businesses throughout New Hampshire. With 21 banking offices throughout New Hampshire and assets exceeding $1 billion, Bank of New Hampshire is the oldest and largest independent bank in the state. Bank of New Hampshire is a mutual organization, focused on the success of the bank’s customers, communities and employees, rather than stockholders. For more information, call 1-800-832-0912 or visit www.BankNH.com.
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1-800-832-0912 · www.BankNH.com
Tiffany BaertPublic Relations Officer