For many first-time home buyers, it’s shocking how the costs can vary from person to person. Most people assume everyone has a 20% down payment, but that’s not necessarily true. That’s the beauty of home loan programs – there are customized products each person qualifies for. So, if you’re not yet ready to apply for a mortgage, but you want to start saving, it can be confusing what goal you’re aiming towards. Here are some tips to help you get started.
Do your Homework
You can do some research into loan programs before you’re ready to apply, to see if you’re eligible for any programs which will lower the amount you’ll plan to save. For instance, if you’re a first-time homebuyer and plan to take advantage of the FHA loan program, you’ll only need to save 3.5% rather than 20%. If you are active duty or a veteran, check your eligibility for a VA loan with no down payment at all.
Build your Credit
A major factor, both for loan rates and for program eligibility is your credit score. Make sure you spend this time bolstering your credit. The higher it is, the better your rates will be. You don’t want to miss out on a low or no down payment program you were otherwise eligible for.
Open a Money Market Account
Take advantage of Evolve’s money market account to get a higher return on your savings. Not only do these accounts receive higher interest rates but opening a separate account for your specific down payment goal will help it go untouched.
If you’d like to learn more about what loan program may be the right fit for you, find an advisor near you today, by clicking here.
Evolve Bank & Trust Loan Production and Representative Centers are not full-service branch locations of Evolve Bank & Trust. These offices do not engage in general banking transactions, such as deposits or payments, and only provide Residential Mortgage Loans. All loans are subject to credit approval. Evolve NMLS # 509256