5 practical steps to save for a down payment
Determine how much you’ll need. Down payments generally range from 3% to 20% of your home’s purchase price, and the rest is your mortgage amount. So, contact us to find out the mortgage amount you qualify for. We’ll then explain your down payment options, so you can decide which option best fits your needs.
Calculate what you need to save monthly. Target when you’d like to purchase, which tells you how many months you have to save. If you’ve already set money aside, subtract that from the down payment amount. Divide this number by the number of months until purchase, and that’s what you’ll need to save monthly.
Open a separate savings account that automatically transfers from your checking account the monthly amount you need to save.
Track your spending. Carefully look at your credit card bills and checkbook to see where you can cut back non-essential expenditures, such as movies and meals out.
Trim recurring expenses. Shop for lower costs for cell phones, cable TV, internet, utilities, car, home, health insurance, etc.
For more down payment advice, and any other information about financing a home purchase, or refinancing to lower your rate or fund improvements, please text, email or call us.
Rebecca Richardson is a Charlotte mortgage banker who excels at helping clients choose the appropriate mortgage strategy and enjoys demystifying the financial process on her blog at rebeccarichardsonmortgage.com. She can be reached by email or at 704.488.8883.