Buying a home is one of the most important milestones in life. And, it’s also one of the most financially daunting. The amount of cash you need for a down payment can often dictate the type of mortgage loan you may qualify for. Saving for a down payment is the first step in accomplishing this feat. Here are a few steps to get you started:
1. House Payment: Calculate What You Can Afford
It is important to first determine what you can swing for a house payment? Do a personal audit of all your income and expenses (car, utilities, student loans, credit cards, etc.) so you can set reasonable and achievable financial goals. View our pre-qualification worksheet!
2. Know How Much You Need Down
After examining your current financial situation and determining your house payment goal, the next step is to determine how much money you will need to get moving. If you have access to around $2,000 or more, then buying a home is possible. The best thing to do, is to set a time to meet with one of our Mortgage Consultants. We can customize a loan plan that will work for you. We will analyze your financial situation and determine what loan type(s) you best qualify for (view the different loan types). From there we can get you specific numbers about your monthly payment as well as all the money you will need for closing, including down payment, closing costs, and escrow items.
3. Plan a Budget to Save
The next step to saving for a down payment is to plan a budget. This can be achieved through various means, including:
Setting up an automated savings account – this takes the effort out of remembering to transfer money into savings each month, which can often result in over-spending. Automated savings accounts designate a portion of each paycheck to automatically be deposited into your savings.
We also recommend rearranging spending habits so that money used for leisure can go toward a down payment. Sorry, Starbucks and Kohl’s, you’re not the priority any longer. Save, save, save.
4. Places Where to Get Funds for a Down Payment
In addition to personal savings, here are a few other places you might find money for a down payment:
-Using gifts from family and friends (Christmas & birthday money!)
-Borrowing or withdrawing from retirement accounts
-Borrowing against a car or asset
-Borrowing from family
-Down Payment Assistance Programs:
Home Team Lending is here to help with the entire home buying process. Give us a call at 970-336-1185 to get started today.Leave a reply →