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This post has great info from my friend here in Metro-Detroit, Mortgage Loan Broker, Cheryl Hale. I utilized these financial strategies myself this year as I saved for my condo.
Open a savings account and set up an automatic deposit. Set aside as much as you can afford, even if it not a lot of $$.
· Look for offers from banks – I just opened a new account and got a $200 bonus for setting up direct deposit. Leave this bonus in your down payment account.
· Unexpected money. Trust me – this happens. You receive an unexpected refund check or settlement from a class action suit that you forgot about. Use this money to add to your down payment account.
· Got a raise? Set aside at least half to go into your savings account.
· Do you get bonuses? Same as above – put half or more into your savings account. And, don’t deprive yourself – use 10% to spend on something fun for yourself.
· Invite friends over instead of going out to eat. Take turns supplying a main dish, have guests bring some side and BYOB.
· Get a side gig and save the $$. Sell items on Ebay or Poshmark.
· Shop around to reduce major monthly expenses. Services such as Roku, Netflix and Hulu make it easy to replace expensive cable. If it’s been a while since you checked rates for your car insurance, renter’s insurance, health insurance, Internet or cell phone plan, now is the time to see how much savings you can obtain.
· Join the Down Payment Movement – it’s free. Get tips and tricks from finance bloggers.
· Track every penny you spend every day for a week – you’re bound to find some painless ways to cut unnecessary expenses.
Also, it’s important to note that you don’t necessarily need 20% down for a home. USDA offers 100% financing and other programs can be used that require only 3% down.
Loan Originator | NMLS # 276668
Envoy Mortgage, Ltd. NMLS ID#6666 | 41001 Ann Arbor Rd., | Plymouth, MI 48170
734.404.2413 | 954.675.9531 | 724.404.2455
With 10+ years experience in lending industry, I educate my borrowers and work with them to find the best mortgage product for their needs. I specialize in working with home buyers: I connect you with experienced realtors who provide a consultative approach to guide you through the process. They are top notch in negotiating for you in this current seller’s market as well as identifying areas where quality homes can be found with less competition which allows you to have a better chance of your offer being accepted.