#1: Start with a Goal in Mind - Find out what kind of loan programs you may qualify for. Will you need 20% or 3% down? A Mortgage Specialist will be able to break down different loan options for you, including low down payment programs. You might be closer to your new home than you think!
#2: Make Room in Your Budget - This is the hard part: you'll have to make some room in your budget. That means you may have to earn additional income, cut back on expenses, or both. But, making room in your budget can help you save the kind of money you’ll need for your down payment, and it will also prepare you for managing the type of tighter budget that homeownership requires..
#3: Set up an Automated Savings Plan - Most of us aren't savers by nature. Allocate a certain percentage or dollar amount of your regular pay to go directly into a savings account or money market account dedicated to accumulating the funds for your down payment.
#4: Bank Your Windfalls! - These can include income-tax refunds, gifts received, bonuses or large commission checks, or even the sale of personal assets. By depositing these funds into your down payment savings account, you fast-forward the process of saving money to buy your future home.
#5: Find Savings in the Margins - It’s time to get tough and cut out some extras. It might hurt some, but keep your mind on your why: home sweet home! Think about your "extras" like vacations, the new big screen TV, and dining out. There are so many fun (and FREE) things to do instead while you save up for your down payment.
Related Information
- Down Payment Assistance Options in Maryland, D.C., and Virginia
- First Time Home Buyers
- Closing Costs
Topics: Down Payment
