How to: Save for a Down Payment
Saving for a home can be easier and quicker than you think. Most people are under the impression you need 20% for a down payment, which is simply not the case. Check out this article here, that goes over common down payment myths. You may qualify for a program that requires as little as 3%
Step one: Determine a house budget
Have a conversation with a licensed mortgage professional about how much house you can afford. This will allow you to have a good estimate of just how much money you will need for a down payment
Step two: Determine a savings plan
Comb through your finances and see if there is anything you can cut out. Eliminate luxury items such as extra subscriptions to tv/makeup/magazines. Opt for eating in versus eating out. Try carpooling alternative methods of transportation to cut down on gas costs, and help the environment.
Step three: Set a Timeline
Create a timeline for when you would want to have reached your savings goal. If it is a year out, plan for that. You can now use this information to determine how much you need to save per month.
Step three: Track your spending
Set up all your finances in an excel spreadsheet or a bill tracker app on your smart phone. This way you can easily see what is paid, what needs to be paid, what you can save, and how much money you have incoming and outgoing. This will allow you to take advantage of any additional areas you could save money.
You could also set up a separate account just for your home savings. Try having a certain amount per paycheck transferred into that account as soon as payday hits for a quicker journey to your homeownership goal.
Step four: Share your goals
Tell your friends, family, loved ones. This way you are not only held accountable but your friends and family can cheer you on. Thinking about splurging on new clothes? Ask your friends, they will remind you of the bigger items you are saving for!
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This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements for refinances, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines. Approvals are subject to change without notice based on the applicant’s eligibility and market conditions. Geneva Financial LLC is not acting on behalf of or at the direction of HUD/FHA or the Federal Government. Geneva Financial LLC is approved to participate in FHA programs but the products and services performed by Geneva Financial LLC are not coming directly from HUD or FHA. Geneva Financial LLC #42056 is an Equal Opportunity Lender and Equal Housing Lender. 3155 S. Price Rd Chandler, AZ 85248. AZ#0910215 Corporate: 3155 S. Price Road • Suite 105 • Chandler • AZ • 85248