How to Save For a Down Payment While Renting

  • Pay down your debt: Get organized by writing out all debts owed, monthly payments required, and come up with a game plan. Some people prefer paying the smallest balances off first or try tackling the highest balance to watch it “melt away” over time. You may even be able to lower your payments by consolidating your debt. If possible, pay more than the minimum amount owed to speed up paying it off and lower your overall interest cost over time. Concentrate on one balance at a time until they are payed down or gone completely! Once this is done, you can use those monthly payments to put towards your down payment. Lowering your debt-to-income ratio much faster also improves your chances of getting approved for a loan once you have saved your down payment.
  • Get a roommate: Finding a roommate can help you pay down your debt as well as save for a down payment while on the road to becoming a homeowner. If you’re someone with an extra bedroom, why not rent it out? Be sure to check your lease agreement for sub-leasing requirements first or see about adding them to the lease.
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