4 Smart Ways to Save Money for Your Down Payment

Pulling together money for a down payment on your first home can be a challenge. After all, many people believe that they need to make a 20 percent down payment on a new home. The good news is that you may only need to make a 3.5-percent down payment with an FHA loan, or you may qualify for a low down payment under another program. Even a lower amount, however, can equate to thousands of dollars that you do not currently have. What can you do to save money for your down payment?

Scale Back
If you are spending most or all of your income each month, saving money simply is not possible. To find more money to save, you must trim back your expenses. Consider relocating to a smaller house or downgrading to a more affordable vehicle. You could also take smaller yet meaningful steps. For example, you could swap cable service for streaming video or downgrade your smartphone plan.

Schedule Automatic Savings Transfers
After you have found extra money to save, you can take an important step to ensure that the money is actually saved. After all, it is easy to spend extra money on frivolous things when you have money in your savings account. The simple solution is to automatically move your extra money to your savings account. By automating it, you never have to worry about overlooking the task.

Make More Money
To make a bigger difference in your savings balance, consider finding ways to make more money. For example, you could ask for a raise at your current job or look for a higher-paying job. Another idea is to pick up a side gig. By working even a few extra hours each week, you could multiply the balance in your savings account over time.

Eliminate Your Debt
Debt is something that many people struggle with, and conquering this problem could yield more money to save. For example, by consolidating your debt in an installment loan, you could reduce the balance faster and lower your monthly debt payment at the same time.

Explore Your Home Loan Options Today
Setting a goal is an important step as well. To set a savings goal, you need to have a firm idea about your loan options. Contact the MortgageDepot lending team today to inquire about the loan programs you may qualify for.

Connect with one of our loan consultants to learn more.