For many, purchasing a home is a dream however because of the increase in cost of living, there is uncertainty in
what is needed to become a homeowner. 

If you’re a renter seeking to purchase a home, learning the best methods to save money is a great step in the right
direction to buying a property. 

Cut down on debt 

Focusing on lowering your debt can help you decrease monthly debt bills, which in turn makes room for you to focus on
your savings. 

This is also a great way to lower your debt-to-income (DTI) ratio, which is the amount of debt you have in comparison
to the income you bring in. Many mortgage lenders prefer a DTI of about 35 to 36 percent or less, which signals to
them you have the capacity to pay back their loan. 

Cut down on extra expenses

Studies have found, many households spend over $100 a month on subscriptions. This is why, doing a detailed analysis
of where your money is being spent is a great way to figure out if certain services are needed or can be canceled to
save money. 

Store your savings in a high-yield CD account 

A key way to increase your savings amount is by making your money work for you. An efficient way to do this is by
placing the money you’re saving up in a CD account. 

CDs are very low-risk and most on average give back around 1 to 4 percent interest on the money you save up. This may
not seem like much, but you gain more money in comparison to letting your money idly stand by. 

Purchasing a home takes time so be kind to yourself as you prepare your finances and household for your home buying
journey.