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4 Tips to Help You Save for a New House

March 18, 2025

Feeling overwhelmed by the thought of saving for a new home? You’re not alone! It can take several years to set aside enough for a down payment and other costs—but with a few smart strategies, you can reach your goal even faster. Whether you’re looking at new homes in Chattanooga, TN, or surrounding areas, these tips will help you stay on track.

1. Determine How Much You Need

Before you start saving, it’s important to know how much home you can afford. Use an online mortgage calculator or get pre-approved for a loan to estimate your budget.

Here’s what to plan for:

• Down payment: You’ll typically need 3-5% of the purchase price for a conventional mortgage. A 20% down payment lets you avoid private mortgage insurance (PMI).
• Closing costs: Set aside an additional 2-5% of the home price for closing costs.

2. Assess Your Finances & Create a Budget

A clear budget helps you understand your cash flow and find areas to cut back so you can save more. Start by tracking your income and expenses, then set a monthly savings goal for your home fund.

Quick ways to free up extra cash:

• Reduce dining out, entertainment, and travel expenses.
• Pause non-essential shopping for clothes, gadgets, or subscriptions.
• Stay motivated by putting a picture of your dream home on your fridge—it’ll remind you to save instead of splurge!

3. Find Ways to Boost Your Income

Saving faster often means earning more. If possible, consider:

• Working overtime or taking on extra shifts.
• Starting a side hustle—freelancing, tutoring, or selling handmade goods.
• Asking for a raise or exploring higher-paying job opportunities (if you have time before buying).

Tip: Avoid changing jobs too soon before applying for a mortgage. Lenders prefer to see at least two years of steady employment on your loan application.

4. Reduce Debt to Improve Your Mortgage Eligibility

Lenders evaluate your debt-to-income (DTI) ratio when approving your mortgage. The lower your debt, the better your chances of qualifying for a loan with a great rate.

Smart debt-reduction strategies:

• Pay off high-interest credit cards first.
• Consider selling expensive financed items—this can lower your debt and boost your savings.
• Avoid taking on new debt before applying for a mortgage.

Let River Stone Construction Help You Get Home Sooner!

At River Stone Construction, we partner with trusted lenders who can guide you through the mortgage process. Whether you work with one of our partners or choose your own lender, our team is here to help you find the best financing options for your dream home.

Want to move in sooner? Check out our Quick Move-In homes! We have brand-new townhomes and single-family homes in Chattanooga, Cleveland, Harrison, and Hixson, TN, as well as Dalton, GA.

Call us today at 423-954-7550 for the latest updates on available new homes in Chattanooga TN!

This post was written by River Stone.