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This refers to the amount that you need to survive which includes your rent, utility bills, insurance, etc.
The bare minimum includes your savings. Every month, put at least 20% of your income into a savings account—without fail!
This refers to expenses such as eating out, memberships, gas, or entertainment. However, that does not mean that you cut them out completely. Figure out your variable expenses and see what you can cut back on. The extra money that you'll get from this should be added to your savings.
Think of this as selling some of your assets so you can buy a new asset which is your home.
This depends on how high or low the interest rates are on your debts. Some lenders would allow borrowers with debt as long as it's within a reasonable amount. But if possible, pay off your high-interest debts as soon as you can.
Having another source of income, even if it's not as big as your main one, can greatly help to increase your down payment money.
Although most of us do not want to borrow money from our retirement plans, it's an alternative that you might want to consider if you need that extra money as soon as possible. However, check with a financial planner whether this is a good option for you.
As long as you are qualified, you can get down payment assistance from some organizations such as the Department of Veteran Affairs, Federal Housing Administration, and the U.S. Department of Agriculture. If you are not sure which one you are suitable for, our mortgage brokers can help you.
