How to save for a down payment
Regardless of the size, there are steps you can take to save for a down payment. Here are some smart saving strategies from industry experts.
- Personal finance site Money Under 30 recommends figuring out how much you’ll need to save by sitting down with a mortgage lender “who will let you know how much of a mortgage you can qualify for.”4
- Moving.com advises opening up a new savings account that’s only for your down payment and signing up for an automatic savings plan.5
- “Trim those quiet, unnecessary expenses,” instructs Realtor.com. Cost-cutting measures could include cutting your gym membership, packing your lunch, turning down your thermostat and biking to work.6
- At Guild Mortgage, we believe that the best way to save is to have a plan and stick to it. Follow these seven steps for setting up a budget, so you’re in control, not your money.
- Did you know that your down payment doesn’t have to only come from your own funds?7 Freddie Mac writes that “your down payment can come from a number of sources, including personal funds, gift funds, grants and affordable second mortgages.” Also, widely available down payment assistance (DPA) programs are designed for homebuyers who can afford monthly mortgage payments but don’t have enough money for a down payment.
Regardless of the size of your down payment, it’s essential that you choose a loan that is best tailored to your needs. That’s why we offer hundreds of loan products for a wide array of borrower situations, including first-time buyers, military families and rural homebuyers. Find a loan that fits your life today.
The above information is for educational purposes only. All information, loan programs & interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply.