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The Mortgage Firm

News & Insight

Down Payment Tips and Tricks

By TMF Marketing

Take a look at some of our recommended tips and tricks for saving for a down payment.

  1. Build a Budget: The first step in the saving process is budgeting. If you don't know where your money goes every month, it's impossible to divert money to your down payment fund. 

  2. Consider Downsizing: One fast way to save more money towards a down payment is to downsize. Downsizing is the process of reducing your expenses and living below your means while you save. 

  3. Tax Refund: Consider using your tax refund towards your down payment. Tax season may be the perfect opportunity to qualify for a new home.

  4. Ask for a Raise: Living paycheck to paycheck, with little wiggle room? It might be time to ask for a raise based on your performance and professional value to your company. 

  5. Reduce or Cut Out a Bad Habit: Reducing or cutting out even one bad habit can help you put away a good chunk of dollars every year. 

  6. Skip a Vacation: Exploring new destinations can be an amazing experience. However, they are often expensive experiences. Consider saving that money for a down payment. 

  7. Pick Up a Side Hustle: In today's world, it's a lot easier to earn money on your own time with a side hustle. (Income from alternative sources will not be included in the qualifying income for the home loan.) 

  8. Chop Down Your Debt: If you're on a mission to buy a home, diverting your extra income toward your debt might seem counterintuitive. However, debt-to-income ratio (DTI) is a factor when applying for a mortgage. Talk to a Mortgage Loan Originator to see if you should take some time to reduce your debt before applying for a mortgage loan. 

  9. Automate Your Savings: If you're the type of person who's prone to impulse shopping, you may want to consider automating your savings. When you make your money less accessible, you may be less tempted to buy things you may not need. 

  10. Rent Out Your Spare Room or Parking Space: Do you have an extra bedroom in your apartment? If you do, consider listing it on an online hospitality website. Or, if you live in an urban area where parking is at a premium, consider renting out any of your assigned parking space.


Disclaimer: Not all borrower’s situations are the same, be sure to make financial decisions that are best for you.


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