Saving Funds for a Down Payment

Saving Funds for a Down Payment

Have you decided to stop renting and embark on the journey to owning your own home? Finding your own home and saving enough money for a down payment is a major life milestone, and it is not a small feat. Budgeting effectively and saving money for a down payment on a home is one of the biggest challenges when buying a home, and there are steps you can take to better understand the process. If you are ready to buy a home near Mount Pleasant, South Carolina, and want to learn more about how to start Saving Funds for a Down Payment, the loan specialists at Lucey Mortgage Corporation can help guide you through the process.

Understanding How Much Down Payment You Will Need

Essentially, when it comes to making a down payment on a home, the higher amount you are able to put down, the lower your overall loan amount and monthly payments will be, which will allow you to save more money in the long run. Typically, a 20% down payment is ideal because at 20% down, private mortgage insurance payments are not required. Even if you are unable to afford a 20% down payment, there are still a variety of other financing options available to help you obtain a home. There are loans insured through the government, (commonly known as non-conventional loans), available that require a lower down payment, or even no down payment. FHA loans offer a down payment as low as 3.5 percent down, and VA loans, (which are intended for qualifying military members), and USDA loans, (intended for home buyers in rural areas), do not require a down payment. There are also many conventional loans available that allow you to purchase a home with a down payment anywhere between 3% – 15% down.

Suggestions to Help You Save for a Down Payment

Even if you qualify for a reduced down payment, you will still want to have a substantial amount saved up because there will be several other expenses associated with buying a home. Here are some suggested tips for saving for a down payment.

  • Try to decrease inessential costs such as eating out, vacations, clothing purchases, etc.
  • Open a savings account with a favorable interest rate, and set a monthly savings goal. When you have decided on a sufficient amount to save, try to automatically transfer the funds into the savings account from your paycheck.
  • Try to pay off any current debts that you owe, such as credit cards, in order to avoid paying interest charges.
  • Attempt to earn some extra income by obtaining an additional job, and then set aside the payments from that towards your savings.

Assistance With Saving for a Down Payment

If you are interested in buying a home in Mount Pleasant, South Carolina, and are looking for assistance with saving for a down payment and financing your future home, the loan experts at Lucey Mortgage Corporation are here to help. Contact us today for a consultation.

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Lucey Mortgage Corporation
861 Coleman Blvd
Mount Pleasant, SC 29464


FRI by appointment