How to Save Money for a Downpayment & Buy a Home Sooner
Zach Silverman | January 8, 2025
Are you dreaming of homeownership but struggling to save for a down payment? Whether you’re looking to buy your first home or move up to a bigger property, saving smartly is the key to making homeownership a reality.
Here’s how you can assess your finances, cut unnecessary expenses, and create a savings plan that gets you into your dream home faster.
Step 1: Know Your Income
Before you can start saving, you need clarity on your income. Create a list of all your income sources, including:
- Take-home salary (after taxes)
- Variable income (overtime, tips, bonuses, commissions)
- Government benefits (child tax benefits, pensions, etc.)
- Annual income sources (tax returns, side hustles)
By tracking all sources of income, you’ll know exactly how much money you have available to save.
Step 2: Track Your Expenses
Most people underestimate their spending. To get a clear picture of your finances, analyze the past 3-6 months of expenses, including:
- Fixed expenses (rent, utilities, insurance, phone bills)
- Discretionary spending (eating out, shopping, subscriptions)
- Debt payments (credit cards, car loans, student loans)
Once you have everything listed, identify areas where you can cut costs to free up money for your down payment.
Step 3: Build a Savings Plan
Now that you know your income and expenses, create a savings plan:
- Set a goal – Determine how much you need for your down payment (5%, 10%, or 20% of your target home price).
- Automate savings – Set up automatic transfers to a separate down payment savings account every payday.
- Reduce unnecessary expenses – Cut back on dining out, impulse shopping, and unused subscriptions.
- Find extra income – Consider freelancing, selling unused items, or taking on a side hustle.
Step 4: Improve Your Mortgage Readiness
Saving is just one piece of the puzzle—qualifying for a mortgage is another! Lenders look at your income, credit score, and debt levels when assessing mortgage applications.
- Check your credit score and improve it by paying bills on time.
- Lower your debt to improve your debt-to-income ratio.
- Talk to a mortgage professional early to explore your options.
Step 5: Get Expert Mortgage Advice
At Silverman Mortgage, we help you create a customized plan to save for a down payment and qualify for a mortgage faster. Our team can:
- Analyze your financial situation and recommend strategies
- Guide you on down payment options (gifted funds, first-time buyer incentives)
- Find the best mortgage solution tailored to your needs
💬 Ready to take the next step? Contact Silverman Mortgage today for a free consultation and start your journey to homeownership!



