HomebuyingFinancial IQ January 23 2018

6 Steps to Start Saving for Your Down Payment

Thinking about buying a home, but having trouble saving for the down payment? If you are struggling with saving for your down payment, you are not alone. According to a study by Zillow, saving for a down payment was the top hurdle towards homeownership for more than two-thirds of renters, beating out mortgage approval and job security. The good news is that saving for a home is getting easier. Today, low down payment mortgages are possible and you may be approved for a mortgage with as little as 3% down, according to Fannie Mae and Freddie Mac, the government-sponsored mortgage enterprises. It's time to start saving!  These 6 steps will help you start saving for your down payment.

1. Open a Savings Account

If you don’t have a savings account already, consider opening an account online or in person at the same bank or credit union you currently use. This makes it easier to transfer funds electronically and track your progress without hassle. There are even automated saving plans that are available at some banks, making sure saving is a priority.

2. Start Budgeting ASAP!

Today, you can budget using a variety of smartphone apps or spreadsheets. Some apps can organize spending habits into categories, making it easy to monitor your activity. On a spreadsheet, you can review your monthly gross income and subtract living costs, taxes, and other expenses. Look into different budgeting practices to guide you in your saving and spending practices so you can find what works best for you.

3. Cut Costs

Calculate the amount of money you need each month to cover necessities and assess where you can cut costs and save. If you take out a reasonable percentage of your income each month to put into savings and modify your spending habits, you’ll be able to make the progress you need.

4. Clean Up Your Bills

Pay off what you can from current cards and cut the credit cards you no longer use to avoid debt later on. When applying for any kind of credit, you encounter interest rates. Before you open up any more accounts, check your current interest rate for all your current bills and accounts. If you make timely payments, you may be able to call to request a lower interest rate.

5. Check Your Credit

It’s time to ensure your credit score is in the right place. Check your FICO score and see how it measures up. If you have good credit, you may be qualified for a smaller down payment and a more favorable interest rate. If your credit isn’t where it should be, don’t be discouraged – be proactive. Check your credit reports for any errors and take the necessary steps to improve your credit.

Find out how our Home Buyer Solutions Group can help you improve your credit.

Speak to a Credit Specialist today!

6. Make a Plan

Now that you’ve set yourself up for success, it’s time to figure out exactly how much you’ll need to save and how long it will take to get there. Meet with a mortgage professional to discover your options and what kind of mortgage you may qualify for. Once you establish your goal, it will be easier to make progress and keep your finances on track. Buying a home can be a long process, but with determination, you will see results. Through saving for your down payment and applying for a mortgage, you prepare yourself for the responsibility of homeownership. By the time you’re moved in, you’ll be able to take pleasure and pride in your accomplishment as a new homeowner.   By Kaylee Fantis

Ready to get started?

Speak to a Loan Officer today!

Sources: Zillow.com TheSimpleDollar.com MoneyUnder30.com

Search Results for query

December 02 2019

12 Days of Savings

From family meals, travel, gifts, and social outings, the holidays are one of the most expensive times of the year. We have compiled some tips to help you spend mindfully during this holiday season.

Read More

November 27 2019

Market Update: FHFA Announces Loan Limit Increases

The Federal Housing Finance Agency (FHFA) has announced that the conforming loan limits will be increased to $510,400 in 2020

Read More

November 20 2019

Why Interest Rates Aren’t the Only Thing That Matters

Shopping for the lowest rate when looking for a lender could be a detriment to your homebuying experience. There is much more that goes into a positive homebuying experience than the mortgage price tag. If you place a value on communication, timeliness,...

Read More

November 14 2019

Homebuyer Solutions Group Success Story

Marylynn M. and her husband successfully improved their credit scores while enrolled in Eagle Home Mortgage’s Homebuyer Solutions Group (HBSG) program and were able to purchase their dream Lennar Home after graduation. We spoke to HBSG Credit Specialist,...

Read More

November 07 2019

Home Organization Tips to Spark Joy

There is a proven correlation between home clutter and stress. Organizing your abode is a quick and relatively easy way to bring more joy (and extra time) to your life. Here are some home organization tips to help you spark joy!

Read More

October 30 2019

Find the Right Home Loan For You

There are several types of mortgage loans that fit various needs. Here is some information about some of the most popular products and why they might work for you.

Read More

October 24 2019

Reverse Mortgage Myths Debunked

As a senior, age 62 or older, a Reverse Mortgage enables you to tap into the equity of your home and benefit you financially today! The funds you receive can be used to eliminate your monthly mortgage payment, pay off debt, increase your monthly cash flow, or...

Read More

October 17 2019

What to Expect: The True Cost of Homeownership

Most soon-to-be homeowners are prepared to budget for their mortgage payment and down payment, but you should go into your dream of homeownership with a clear picture of all of the costs associated with this milestone.

Read More

October 09 2019

A Simpler Path to Homeownership with Credit Solutions

Interview with Credit Specialist, Sara Gellatly, to learn more about what HBSG is and how it helps real customers achieve their dream of homeownership. 

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?