Honestly, unless you are independently wealthy, you need to save as much money as you can if you want to buy a house. There are many reasons for wanting as much money saved as possible.

• If you make a bigger down payment your mortgage payments will be lower.
• Depending on the type of financing your will have, you have to have a certain down payment amount to get the mortgage in the first place.
• Many homes are in multiple offers these days and having a larger down payment may help your offer get the home.
• Once you own a home you will have other expenses for upkeep, repairs, and things you may just want for the house.

You don’t think you can save any money.

• Fact is, most people can find a way to save if they want to. If your income is really too low to save, then you may want to wait to buy a house.
• Cut out some of your extra activities like eating out or shopping.
• Skip your vacation this year and bank the money you would have spent.
• Put off buying a new car unless you really have no choice.
• Spend more time with your friends that tend to be more frugal rather than your big spender friends.
• Create a budget with a savings plan and stick to it, no exceptions!
• At first it may seem like a sacrifice, but if you really want your own home, cutting back for a time will pay off big in the end!

Before you decide that the real estate market is really improving and you could sell your home FSBO (For Sale By Owner), you should take a look at some FSBO statistics.  The main reason sellers choose FSBO is to save on money, aka, commission but in the end IF your home sells, have your really saved anything? You are trying to save yourself the realtor commission but in the end when you figure all the work you have to do yourself to market your home correctly, hiring a lawyer to go over the paperwork with you and your sale price, have you really saved or lost?  Keeping Current Matters put out the following graphic about FBSO sales based on statistics from Google and the National Association of Realtors. You can click on the graphic for a larger version.