Saving for a house can be very intimidating for most future homeowners. The average price of a home in Ameris Bank’s geographic region ranges from $290,000 - $461,000. Likely, that’s more money than you’ve ever spent in your life on anything. So where can a first-time home buyer begin? Ameris Bank offers tips to help you learn how much you can afford and save for your home in one year. With smart planning, expert help, and tracking, your dream home may be closer than you think.

Learn How Much House You Can Afford

To begin your home buying journey, you need to learn your range of affordability. There's nothing worse than searching for your dream home and realizing that you ended up looking at homes you can't afford. One important point to keep in mind is that just because a mortgage lender says that you can take out a mortgage for a certain amount, doesn’t always mean that you should. To avoid this common mistake, Ameris Bank offers various tools to ensure you know how much house you can afford ahead of time.

For a quick way to plug in numbers, run current home loan rates, against a home loan affordability calculator. To ensure you meet your financial goals, you will first need to establish a down payment budget. Keep in mind your timeline for this budget. If you want to save for your first house in 12 months, you must represent that in your spreadsheet. It’s also important to consider the length of the mortgage loan and how comfortable you feel paying it off. Consider the 12/25 rule of thumb: a 15-year fixed-rate mortgage should make up no more than 25% of your monthly income.

Seek Help from A Financial Advisor

For assistance with sticking to your budget and ensuring it is realistic, contact a local financial advisor. They can provide you with helpful tips on how to improve your chances of being able to save for your first home. He or she can recommend where to cut spending and provide suggestions on what you should aim to spend on specific categories (e.g.: clothes and food), so you can reach your goal.

If this will be your first home mortgage, financial advisors may be even more useful to you. Consider your advisor as a first-time home buyer guide for all of your questions along the way. Some financial institutions, like Ameris Bank, offer special first-time home buyer programs, which offer discounted home loan rates, one-on-one guidance, and reduced down payment options. 

Pick The Ideal Mortgage Lender For You

A key benefit of getting a mortgage through a bank is their in-house loan packaging, giving them more control over underwriters. Choosing the right mortgage lender is a crucial step in the home buying journey. Not only will they help provide the best rates, but they will share their expertise throughout the entire process. 

If you're in a time crunch, it’s best to handle most of the busy work early on. If you want to appear more serious to those selling their homes, you should first secure a mortgage pre-approval. This also provides lenders with the information they need when you decide to apply for a home loan. Besides checking your credit score, a lender will ask for information like your social security number, employment details, bank account numbers, tax returns from the past two years, and intended down payment.

Utilize A High-Interest Savings Account

Your home savings need a safe place to grow. While many use savings account, saving for a down payment in a year creates higher-interest options. Ameris Bank offers high yield savings options to put your money on a faster growth track. Typically, a traditional savings account offers low interest rate (less than 1%), while a high-yield savings account, money market or CD provide a significantly higher rate. For a better idea of how much money can grow in your savings account, use a compound interest calculator.

Buying a house can be achieved if you plan for and are dedicated to saving and being financially responsible. Ameris Bank is here to help you navigate all of life’s milestones, including buying your first home. Contact our mortgage banker team to see how we can help you along your homebuying journey.


Sources: 

1. https://www.ramseysolutions.com/real-estate/save-down-payment-while-renting
2. https://www.creditkarma.com/savings/i/high-yield-savings-accounts
3. https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator 

Reviewed April 2025
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Ameris Bank is not affiliated with nor endorses any of the companies featured in this article.