For many people, the down payment is often the most difficult part of purchasing a home. You may have a good credit score, steady income, and a strong payment history, but it is often challenging to come up with enough savings for a down payment, even on a starter home.
At Local Mortgage, we understand that saving for a down payment can be challenging.
We offer a mortgage loans that help you buy a home with as little as 3% down payment, so buying your dream home is more attainable than you may realize.
Here are a few tips that will help you save for your next big step!
Recurring Savings
When you first begin mortgage calculations, you will want to have a rough idea of the cost of the house you plan to buy so you know how much to save. You will also want to have a timeline in place for when you would like to purchase a house. With these two things in mind, you can then set up recurring payments to make to a savings account solely used for down payment savings. Saving a set amount each month or paycheck is the single-best way to save money quickly. Simply take the estimated down payment you would like to make and then divide it by the number of months in your timeline, and save that much each month.
Pay Off Debt
It can be almost impossible to save money while you are in debt, particularly debt with high interest rates. While it can be done, it is best to first pay off high-interest debt so that it does not eat away at the amount you set aside to save each month.
Get a Side Gig
In order to maximize the amount you can save, consider getting a second job or another source of income. Working a second job for even as little as 10 hours a week can make a major difference in your income and increase your potential to save. Consider working as a freelancer doing something you are passionate about, which helps make your hours spent more enjoyable.
Lower Your Expenses
Finally, one of the best ways to save money is to lower your expenses each month. It starts with obvious steps like eating out less, going to fewer concerts or sporting events, and only buying essential items. You can also take cutting expenses further by cancelling TV or paid streaming services, eating affordable at-home meals, and kicking expensive bad habits.
Get a Home Loan From Local Mortgage
Hopefully these tips can help you get started saving for a down payment. The team of mortgage experts at Local Mortgage can help you do mortgage calculations and find the right mortgage products for your needs.
Contact us when you plan on buying a home and our team of experts will be ready to help!