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

February 07 2019

A Modern Mortgage with a Personal Touch

In the digital age, we know that you expect a simple online experience that is quick, easy and guides you step-by-step through the mortgage process. With Eagle’s Digital Mortgage, you can apply for a home loan faster and easier than ever before –...

Read More

February 04 2019

How Secure Is Financing Your Home Online?

Technology has changed the way we live our lives – including home financing! Eagle’s Digital Mortgage has been found to save days (even weeks!) in the mortgage process by providing a more complete pre-qualification upfront and an easy way for you to...

Read More

January 23 2019

A Community That Fits Your Lifestyle

You’ve worked your sixty-hour weeks and raised your family, now is the time to live the lifestyle you deserve. Lennar's award-winning Active Adult communities create a relaxed and stress-free setting while also offering a variety of amenities and...

Read More

December 13 2018

Student Loan Debt? How You Can Still Get A Mortgage.

While your student loan debt may look like the biggest obstacle getting in the way of homeownership, a lender may not see it as much of a threat. Here are what lenders are looking at and how your student loan debt affects your approval.

Read More

November 15 2018

The Impact of Rising Rates

If you’ve ever had a credit card or purchased a car, you should be familiar with interest rates. An interest rate is the percentage of the amount you are borrowing (known as the principle) charged by the lender as a fee for allowing you to use their money....

Read More

November 12 2018

What to Keep From Your Closing

After several stressful months of buying or selling your home, it may be tempting to put the transaction in the past and dispose of the evidence—which is often more than 100 pages. However, there are several important legal and financial documents...

Read More

November 05 2018

What is an Appraised Value?

Everyone wants to sell their house for more than they bought it for, but real estate is trickier than that. Markets change, and home values change right along with them. Fortunately, there are licensed professionals called appraisers who will come to your home,...

Read More

November 02 2018

Pros and Cons of Buying a Condo

Whether you are a first-time homebuyer or searching for home number ten, buying a condo instead of a house may be the perfect choice. Most condos are essentially a hybrid between an apartment and a single-family home. They are great for certain lifestyles but...

Read More

October 29 2018

What a Home Inspection Should Cover

Before making what may be the largest investment of your life, you’ll want to get a home inspection. Home inspectors are trained to examine the physical structures and systems of a house. If you’re going to spend hundreds of thousands of your...

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?