Down Payment Saving Tips

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 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.

How I Can Help You

When it comes time to purchase a home or refinance an existing loan, I want to help you! Hopefully articles like this give you good information and a better understanding of the mortgage world, but let me use my experience and expertise to help you with your particular situation.

I tell my clients and referral partners that a mortgage transaction starts with a simple conversation. Let’s talk about your financial situation, budget, and goals so that I can help you determine the best solution for you. During a 10-minute informal conversation, we can get you on the right path as it relates to a home purchase or mortgage refinance.