7 Ways to Save for a Down Payment

The more money you have when you apply for financing, the easier things typically go for you. A higher down payment can lead to better loan terms. Money in the bank means that you can better absorb closing costs and fees that come up when you buy your home.

While most people feel that there is no room in their budgets for extra savings, with a little work you can find hundreds of extra dollars every month. A few of the most painless ways to cut costs and increase your savings:

1. See if You Can Get a Cheaper Cell Service.

On a huge unlimited plan that you never fully use? If you are not currently under contract, you may be able to get a better deal somewhere else. Many phones and phone numbers can be ported from provider to provider to get you a better rate. You may also be able to find a cheaper deal from the provider who you use now.

2. Replace Paid Subscriptions With Free Versions

Many subscription services have premium versions in which you pay a monthly fee. This can add up over the course of a year, but it isn't always necessary to pay extra for the extended version of a product. Oftentimes, there is a free service which offers some most of the same features, but is supported by ads instead. However, if you find that you miss the features that a paid account offers, you can always add the service back, sometimes at a better price.

3. Bank Rebate and Coupon Savings.

Many personal finance experts recommend using the "snowflake" method to pay down debt: every small amount of money that comes in, such as a rebate or a gift, is applied to the debt until it melts away. If you are attempting to save money for a down payment on a home, you can use this method to slowly build up the sum.

Got a little bit off your grocery bill for each of the four bags of your own you brought? Move that to your savings account. Got cash back when you utilized a rebate offer? Into savings it goes. To make it easy to move your money, use your bank's mobile app. This way, you can move cash from the parking lot after shopping or right at home after paying bills.

4. Ask Your Cable Company for a Better Rate

The costs of television and internet service tend to creep up over time. What some people do not know is that customer service and client retention reps at your cable company usually have the power to move yours back down. Often, they will cut a percentage off your bill for months at a time in return for an agreement to stay with the service. If you cut even a small portion out of the bill every month for a year, that's more you have in the bank at the end of the year.

5. Do Some Microtasks.

Sites that include Amazon Mechanical Turk, Swagbucks, Crowdflower and a host of others will pay people small amounts of money to complete small tasks that are better performed by humans than computers. A typical task may involve identifying the contents of a photo or answering questions for a short academic study. With these and other sites, it is easy to make a few dollars a day or more while watching TV in the evening. Funds can be deposited directly into your bank account. Link these accounts to savings to avoid temptation to spend them.

6. Sell a Few Possessions to People in Your Community.

Dismayed by high fees on auction sites like eBay? Most areas have sales-oriented Facebook groups or local seller sites where you can list your goods for sale at no charge. Take a few photos, write a description and wait for offers to come in.

If you are worried about safety, arrange to meet in a public place when making a sale. Plus, selling your stuff has another benefit: every item you sell is one less thing that you have to transport to your new home.

7. Get cash back when prices go down.

Services such as Paribus scan your emails to check for purchases online. The app automatically compares prices to those on vendors' sites and asks for price adjustments when prices go down. In the case of Paribus, they take a small percentage of the savings then see that the rest is returned to you.

While many of these methods do not net a lot on their own, together, they can add up to a lot. It's possible to find a loan with a lower down payment, but doing a number of small things to ensure that you meet lenders with a large amount of cash may score you the ability to get a better deal on your loan.