Wondering how you can save up enough money for a home loan down payment?
You may qualify for a zero-down mortgage program, freeing you from having to worry about the problem. If not, you can look into the various down payment assistance programs available in Utah. But the reality is, you may need to save several thousand dollars.
That may sound impossible, but if you get creative with your home savings strategies, the goal is completely attainable. Below, the Intercap Lending team shares tips on how to quickly reach your home loan down payment target.
Automate Your Savings
Put technology to work for you, using direct deposits or an app to automatically add money to your down payment fund. Choose an amount that won’t hurt your budget, and your home savings will grow without you even giving the matter a thought.
Put a Pause on Spending
Review your expenses and look for areas where you can reduce or freeze your spending. That may mean not buying any new clothes, for example, or cutting back on takeout meals – but the temporary sacrifice is worth it to sock away the savings.
Increase Your Income
Are you confident in your job performance? If the time is right, you might try to negotiate a raise. You could also consider side jobs, such as grocery delivery or ride-share driving. In any case, put the extra income straight into your home savings account.
Size Up Your Retirement Savings
If you’re contributing a percentage of your income to a retirement plan, consider hitting the pause button on that practice and diverting the funds to your home savings. A short-term pause can make a major difference in how quickly you can reach your goal.
Use Cash Windfalls & Monetary Gifts
Salary bonuses, tax refunds, lottery winnings – put any unexpected cash you receive toward your home savings fund. And if anyone asks what you’d like for a birthday or holiday gift, tell them you’d prefer their help achieving your dream of homeownership.
Explore Special Down Payment Programs for Homebuyers
Eligible Utah homebuyers can get a home loan with no money down, and some mortgage programs require just three percent of a property’s purchase price. In addition, grants and mortgage loan assistance programs are available – so if scraping together enough cash is too tall of an order, there are ways to get the help you need.
If you’re trying to save money for a home loan down payment, turn to the mortgage professionals at Intercap Lending. Our team can help you explore the options for low- and zero-down home loans, and we’re familiar with all of programs that offer grants and mortgage loan assistance to Utah homebuyers.