One of the biggest barriers that stand between first-time buyers and homeownership is the down payment and closing costs. Closing on a home requires buyers to bring a significant amount of cash to the table, which for many requires several months or years of saving—especially for young families and recent college grads. Coming up with the funds to close on a home requires careful and strategic planning. Our real estate agents came up with this handy list of tips to help clients save up for a down payment on their first home.

• Determine How Much You Need
  The good news is first-time buyers often have several down payment options when financing a home purchase. While a 20% down payment eliminates the need for Private Mortgage Insurance (PMI) payments, you may be able to secure a loan with as little as 3.5% down if you qualify. Work with your mortgage lender to calculate a few different financing scenarios and determine what you need upfront to close on one of these spectacular North Canton homes for sale.
  
  
• Open A High-Yield Savings Account or CD
  High-interest deposit accounts are great tools for growing your savings. Open a new account competitive rate, and you'll basically generate free money on your deposits. There are dozens of savings accounts offering competitive rates, but these fluctuate with the market over time. While CDs usually offer higher rates than savings accounts, they also impose penalties for withdrawing funds before maturity. 
  
  
• Reduce Your Monthly Expenses
  Those monthly subscription boxes and streaming services add up fast. One of the best ways to carve out additional monthly savings is by reducing recurring expenses. Take a look at your monthly bank statements, and you can likely identify a few items to cut.
  
  
• Automate Your Savings
  One of the best ways to save money is to not think about it! Configure your checking account to automatically transfer funds to your savings regularly or ask your employer to route a portion of your paycheck to a separate account. By relying on automation, you'll save up enough for one of these beautiful Akron homes for sale in no time.
  
  
• Look Into Assistance Programs
  Many local and state-level down payment assistance programs offer financing, grants, and tax credits to help support first-time buyers through the closing process. Do some research to find out what options are available in your city. Income restrictions do apply to many of these programs.
  
  
• Borrow Money From Your Retirement Account
  This should be a last resort option, but if you need to purchase a home quickly, borrowing against your 401K or IRA can quickly get you the cash you need to close. You'll need to repay the full amount plus interest within a specific timeframe; otherwise, the loan will count as a distribution and be subject to withdrawal penalties. 

Buying your first home is a major accomplishment, so don't forget to celebrate once you've hit your savings goal. You'll be one step closer to your dream home. Contact us today for more first-time homebuyer tips.