Buying a home is a big decision, but making the decision to buy is only the start of an exciting journey. Before you get the keys to your own home, you'll need to have the necessary funds for all the associated expenses.  To help put you on the path to home ownership, here are seven tips on how to save for your first home.

1. Start saving now - Don't wait one more minute.  Start saving right away.  Even if you can only save $10 a paycheck, do it.  That will put you $10 closer to your own home.

2. Make a plan - Determine when you want to buy. Then come up with an estimate of how much you will need and divide that by when you want to buy.  That will show you how much you have to save every week or every month to reach your goal. 

3. Create a separate savings account - Once you decide to buy a home, start a savings account dedicated to that goal.  This will make it easier to resist the temptation to withdraw that money for other reasons. 

4. Make hard choices - Decide how important buying a home is to you and your family, then take a hard look at your budget.  Are there things you will have to cut to make your savings goal? 

5. Make it automatic - Many employers will deposit your paycheck into multiple accounts, so take advantage of this by having funds deposited into your home buying savings account.  If your employer doesn't offer this, set up through your bank to have the appropriate amount moved automatically from your checking account to your home buying savings account each paycheck.

6. Save for the unexpected - Don't just focus on the down payment.  Homeownership has a lot of other associated costs.  If something goes wrong, you can't just call the landlord like you can when renting.  You are the landlord and will have to bear the cost for any repairs or maintenance. Plus, you may want to do cosmetic changes to the home such as new carpet or painting rooms, which are easier to do before you move in.

7. Check out your IRA - First-time homebuyers can withdraw up to $10,000 from an IRA to use as a down payment without the normal penalty if you're under 59 1/2 years old; however, you'll still have to pay income tax, so don't forget to factor that in. Check with your tax advisor and financial advisor before depleting your retirement funds.

Buying a home takes planning, but with determination and some patience, you can be living in your own home.  If you would like additional information about buying a home, please contact us.