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3 Tips To Save For Your Down Payment

Pay down your debt to clean up your credit

Your credit score can be a tricky step when it comes to saving for your first home. You need your credit score as healthy as possible before you apply for your mortgage loan.

The average credit score in Massachusetts, according to Experian, is 710. A score of 660 should be high enough to qualify you for a good loan with a low-interest rate although it always depends on your lender. The best way to get on your way to that number is to pay your debt as much as you can, clear up any disputes on your credit report and this should boost your credit score.

Separate and automate your savings

Saving money is never easy so if you have trouble with it, you’re not alone. According to The Atlantic, one of the biggest reasons that nearly half of all Americans have little or no emergency savings is because they have taken on too much mortgage debt.

So first things first you need to save. Then buy a home. An easy way to save is automating your savings. All you have to do is set up a direct deposit on your paycheck and then schedule regular transfers into a savings account reserved only for dream home savings. This way you won’t accidentally spend what you're trying to save or be tempted to.

Downsize to upsize

Get rid of anything you don’t really need. Yes, this is a general statement but just take it expense by expense. Do you need cable TV? Do you need a two-bedroom apartment for one person? The more places you can trim cost the faster you’ll be able to come up with your down payment.

If you follow these steps you’ll be on your way to saving enough for your dream home. If you can save just 20 percent, you may even qualify for a lower interest rate. Saving for something you really want can be hard but it’s always worth it.

Start browsing for homes now or set up a consulation to see what’s available in your market.

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