You’ve already heard it before – a home purchase is one of your most significant buys in a lifetime. Not only do you need to find a mortgage lender to help finance your house, but you’ll need to be ready of all the financial requirements in order to get approved of the loan.
With the down payment being usually the first and biggest closing you’ll need to worry about, it can be pretty intimidating to think about how you can manage to pay such upfront fee. Lucky for you, saving enough money for the down payment is still attainable.
Here are seven clever hacks to help you save enough cash for a house down payment this year.
Table of Contents
Choose A Mortgage And Lender Wisely.
Each lender and mortgage option has different sets of down payments. Take FHA Loans Dallas for example. They require a minimum of 3.5% down payment. This is a good option for people with poor credit score and report, wishes to buy a house but can only afford a small down payment. Use your right to shop for lenders and compare their rates before signing an agreement.
Make Use Of The Available Down Payment Assistance Programs.
If you want to save thousands of dollars out of down payments, don’t take Down Payment Assistance Programs for granted. Don’t be shy about asking your lender if you qualify for such a program to reduce your down payment fees. It’s best to ask instead of assuming you’re eligible for a Down Payment Assistance Programs only to find out you don’t even qualify.
Check your State If It Has Down Payment Assistance Resources and Programs As Well.
You can never tell if you state also offers Down Payment Assistance Resources and Program if you don’t ask in the first place. Who knows – you might snag a better deal and lower down payment fees after doing your research.
Recommended Read: A wealth of resources for first-time home buyers in the Washington area
Automate Down Payment Savings
Budgeting is not enough if all your income goes into a single account. It would be best to allow a percentage of your monthly income and deposit that to separate savings account meant to save your home’s down payment. By treating your down payment savings as an expense and automating the saving process, you’re sure to save consistently enough to cover for down payments.
Reserve A Slice Of Your Tax Refund For Down Payment
Do you expect to have a tax refund soon? That’s awesome news. This is an excellent opportunity to add cash to your down payment savings. Instead of treating yourself on a trip to the beach, you’ll be able to save more for your home’s down payment and enjoy your money for more extended periods.
Use Your Gift Funds
That’s right. Some mortgage programs like FHA Loans Dallas accepts down payments given by a family member or a friend. The cash needs to be deposited in your account at least 3-6 months before applying for the home loan. You’ll need to provide proof that you got the down payment money as a gift.
Good Read: The Rules for Documenting Mortgage Down Payment Gifts
Find Another Job To Add Extra Income
If your schedule permits, find an additional source of income. You can find jobs that require you to work part-time, and you can even find ways to monetizing your time with remote jobs.
