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How To Save For A Down Payment

In today’s mortgage market is can be hard to save for down payment but not impossible. Mortgage lenders are now looking to lend money to those with 700+ FICO scores and at least 10% down but in most cases 20% is currently needed. So how do you save for a down payment?

You need to ensure you are contributing money to your savings account automatically. If possible have your savings money come directly out of your paycheck and get deposited into your savings. Most people that try and do it on there own end up spending the money on something else. A new pair shoes, CD, new jeans, movies or just about anything, don’t get caught in that trap. Once you have the savings account all set up don’t touch the money. I know it’s easier said than done but if you really want a house you need to have discipline.

Another good way to help build up cash for the down payment is saving money on meals. in today’s society people are eating out 5 to 6 times per week and this can really add up. If you cut back and make food from home a typical family of four could save as much as $1500.00 more per month. You can find other good ideas in the frugal link directory. Remember saving now for your house will pay off big time once you are in.