If you're currently house hunting, you're probably feeling intimidated by the real estate market. Mortgage rates are surging and there are more buyers than homes available, so every open house is swarmed with families just like yours eager to secure their dream home.[1] Then the bidding wars begin. 

It may feel like homeownership is out of reach right now, especially if you are already expecting or raising a little one. But fear not. If you feel like homeownership is the right financial move for your family, there are strategies you can follow to save for the house you want. Financial and real estate experts share their tips for making your homeownership dreams a reality. 

You may feel intense pressure to buy a house when you find out you're expecting a baby. When I was pregnant, my husband and I were living in a one-bedroom apartment with no room for a stroller, crib or any gear a baby needs, so moving to a house felt essential. But buying a house is a choice, not a requirement. There are many benefits to renting either a house or an apartment when you have a baby. If you do want to pursue homeownership there are ways to determine if you can afford it.

You'll need to look over your budget — if you already have debt, you will need to be prepared to take on the additional debt of a mortgage, explains Howard Dvorkin, CPA and chairman of Debt.com. You will also want to monitor your credit score, which will help you secure a mortgage loan, and educate yourself on the overall costs of homeownership. This will include insurance, property taxes, utilities and maintenance. 

You can use a mortgage calculator to determine what you can afford and how it plays into your family budget.[2] Home lending advisors suggest spending no more than 28% of your monthly gross income on your mortgage payment.[3]

You will also want to consider the additional cost and labor involved in maintaining a home you own. While you may feel ready to ditch your landlord, it can be a huge new expense when you're suddenly the one responsible for landscaping, exterminators, compost collection and chimney or septic tank cleanings, not to mention any unexpected emergency repairs you have to make.  

How much should you save to buy a house? 

Even if you're getting a loan for your future house, you will still need cash to cover a down payment, closing costs and moving expenses upfront. 

Your down payment will be a percentage of the home's purchase price. Closing costs are fees you pay when you sign all the paperwork — these depend on your credit score, location and mortgage value. "Down payments can range anywhere from 3.5% to 20% of the home's purchase price," Dvorkin says. Closing costs can run you another 3% to 6% of the total loan amount, he notes. 

If the house sells for: Total estimated funds needed:
$150K$9,750 to $39,000
$250K$16,250 to $65,000
$500K$32,500 to $130,000
$1M$65,000 to $260,000

If these numbers seem overwhelming, know that there are assistance options available. The Federal Housing Administration (FHA) offers loans based on buyers' credit scores that let them qualify for a lower down payment of 3.5%. First-time home buyers may also qualify for down payment assistance that lends funds to help with closing costs, explains Katie Hughes Johnson, a Ponte Vedra Beach-based realtor with RE/MAX Specialists PV.[4] To learn more, reach out to a mortgage lender or local realtor. 

How to save for a house 

If you do decide homeownership makes sense for your family right now, there are ways to start saving. 

1. Become your own accountant 

Saving for a home is the perfect time to assess just how much of each paycheck goes to essentials and how much is left over to put toward future goals. To do this, you can track your cash flow and balances across all bank accounts and investments. Apps such as Mint and Empower let you see all of your accounts together on one platform. 

"Once you have the complete picture, you can set a savings target for each month," says Nicole Lapin, financial expert and author of Miss Independent: A Simple 12-Step Plan to Start Investing and Grow Your Own Wealth. 

Lapin's recommended formula is to spend 70% of your monthly paycheck on essentials (rent, utilities, insurance, food, etc.), 15% for fun and then ideally save at least 15% of your earnings. This money can go into an investment account if you're not ready to purchase a home immediately, or a high-interest savings account if you want to keep assets liquid to make more sudden moves with your money. 

2. Set it, and forget it 

Take that 15% of your paycheck you're planning to save, and set up an automatic direct deposit to a savings account, Lapin suggests. Then create safeguards for withdrawals to support your goal of saving for a home. Of course, you can still access it in case of emergencies. 

"Have the money automatically deposited into an account, and don't link it to your ATM card or other accounts," she says. You can often do this by speaking with your employer and a bank rep. "Ideally, access to the money should require a login to initiate a transfer or, better still, a visit to a physical bank to make the withdrawal. This helps with sticking to a savings plan, and it prevents impulse withdrawals."

3. Get creative about new income opportunities

Look for part-time gigs on sites like Upwork, Uber, and Fiverr if you're trying to save for a house, suggests Andrea Richardson, a realtor with Sotheby's International Realty. "It can often be easier to earn more money than it is to save," she explains. "For example, saving $5 each day by skipping Starbucks will save you $1,825 in one year. That's not an insignificant amount of money, but it's not going get you a house. However, if you were to find a side gig that paid you an extra $25 dollar per day, that would be $9,125. That could cover closing costs on a home." 

If a side gig isn't reasonable for you, you might be surprised to learn that you could bring in some extra money by selling unused clothing or tech around your house on apps like Facebook Marketplace, Mercari or Poshmark. 

4. Cut back on extra expenses

Saving for a home with small children will also likely involve cutting back on some superfluous expenses and entertainment. 

"My hobbies used to include spending hundreds of dollars on craft beer every month," says new dad Joe Pye, an accredited financial counselor at Debt.com. "Over the past three years, there wasn't a local beer release I missed. Once I learned I had a baby on the way, there was a natural switch that went off in my mind telling me to stop." 

Now, Pye saves that money and puts it toward more pressing expenses. "I just stopped spending hundreds of dollars at local breweries and started saving that money."

Some expenses you once found essential may be negotiable right now. For example, you might not need two cars in your household. 

"Because I work from home and my husband attends school online, we were able to sell one of our two vehicles last year and traded in my car for an older one that had a lower monthly payment," says Sammy Broderson, a Florida-based mom of two who recently bought a new home.

Some other places to cut back could include going out to eat, shopping for new clothes, or taking big vacations. Instead, consider a meal subscription kit, closet swaps with friends and local staycations — you'll still get the thrill of new foods, clothes and activities without as big of a price tag. 

5. Ask for help 

It's hard to ask for help as a new parent, but it can save both your sanity and money.

"Don't feel weird about accepting free hand-me-down clothes and toys," Pye notes. "Babies go through clothing very quickly and may end up wearing something only once. Baby clothing can range from $5 to $40 depending on the item and brand. Two family friends gave my wife and I boxes of baby clothes, [and] our baby's nursery is completely stocked." 

If you don't know anyone to ask for pre-loved items, check out your local Buy Nothing groups on Facebook or consignment shops. 

You can also ask for help with child care and other baby-related costs. Saving on these things regularly can help free up cash to put toward your new home. 

The path to homeownership will look different for everyone. While saving money to purchase a home may seem out of reach to young families, it's not impossible. 

"Remind yourself daily about the big goal, track progress and be intentional about saving, [like] choosing off-brand groceries, eating at home more often and taking local vacations," Richardson says. "Within a year, I think most families can be well on their way to homeownership."