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3 Simple Ways to Increase Your Down Payment Savings

How to Increase Your Down Payment Savings

Down payment is probably one of the most important things when it comes to buying a home or honestly a big purchase in general like a car. It can be hard and tricky to save a big chunk of money for a down payment on a home. Lenders usually like to see 20% of a down payment on a home, so the more money you put down the cheaper your monthly payment will be. Here are some ways to increase your down payment savings.

  1. Ask Your Family

Majority of mortgage programs will let you use money that other people have given you from like a family member towards your down payment. It’s obviously a process and is usually known as “gift money.” In order for a family member or someone to give you money in the form of a gift lenders need a letter from the bank or of some sort saying that they are giving this specific amount of money to them as a gift not a loan. Also, they may ask for a bank statement from the giver and sometimes even the receiver to prove its their money.

  1. Your Job May Help You Out

4 year colleges and other employers might offer a down payment or other assistance programs that may be available to their employees. The best way to find out if your job offers any of these home-buying programs check with the human resources department to seek further information. Also, if you’re currently looking for a new job, try talking them into adding in a relocation or down payment assistance into your offer!

  1. Budget Better!

Humble yourself and start tightening up your budget more! If you have the thought of even buying a home then you really need to change your spending habits. Start meal prepping and bring lunch to work instead of eating out every day, cut out a cable service and stream shows and movies from an online subscriber like Netflix or Hulu, workout from home/outside or free facilities instead of paying that monthly gym membership!

 

 

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