How to Save for a Down Payment on Santa Cruz Real Estate

Posted by Lauren Spencer on Sunday, April 21st, 2013 at 1:01am.

If you are planning to invest in Santa Cruz real estate, it’s always wise to make as much of a down payment as you can. The more money you can deliver up front, the smaller your mortgage will be. With a smaller mortgage, you will pay less interest over the years, which will save you money in the long run.

The advice from most financial experts is that you should have enough money for a 20 percent down payment before buying a home. This might seem like an overwhelming task, so here are some tips to effectively save money for a down payment on your Santa Cruz real estate.

Eliminate Debt

Get rid of any debt you might have. If you are wasting your money on credit card interest each month, pay off these bills before you start saving. This will free up some cash in your monthly budget, which you can then start putting into a savings account.

Consider Another Source of Income

Take on a second job for a while, perhaps on weekends or a few evenings during the week. Any income from your second job can go straight toward your down payment.

Make a Plan and Stick to It

Create a budget to outline where all of your money goes on a monthly basis. You might be surprised to find out how much you have been spending on shopping or entertainment. Look at areas of your life where you can spend less so that you can put that money into your savings instead. 

Purge Your Belongings

Sell everything you don’t need. Do you really need that second car? What about all the junk in your garage that you haven’t used in years? Go through your possessions and be brutally honest with yourself as to whether you will ever actually use it again. Then you can sell your unwanted goods online or at a garage sale, and put the money toward your down payment.

Putting away money for a down payment to purchase Santa Cruz real estate takes patience and dedication, but it will save you thousands of dollars in interest over the years.

If you’re thinking about buying a home, please call me at 831.662.6522 or email me at for more information.

For additional real estate information, please visit my home page at


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About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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