3 Simple Ways 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.
- 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.
- 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!
- 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!