11 Easy Ways to Meet Your Home Loan Savings Goals
Whether you’re shopping for your first home or are looking to upgrade, one of the biggest obstacles any buyer faces is coming up with enough money for a down payment.
Just as no two borrowers are alike, the same can be said for lenders and loan programs. Loan terms – including your down payment – will vary depending on your financial situation, credit score, and other application requirements.
Certain loan programs, like federally-insured FHA loans, come with far lower down payment requirements than other options, which is why they are great for first-time buyers. If you qualify, your FHA down payment could be as low as 3.5%. However, for a conventional mortgage, you can expect to be on the hook for a down payment of 15 to 20%. If you’re looking at a $200,000 mortgage, that means you need to be able to produce $40,000 just to secure your financing – and that’s not inclusive of closing costs and other fees you may be responsible for.
Intimidating? Yes. Impossible? No. Regardless of how much you want to save and how much you already have saved, with some easy adjustments to your lifestyle and some personal finance hacks you’ll be able to put money towards your down payment goal – without uprooting your life.
Take a deep breath, take some notes, and start saving for your home loan down payment.