If you’re saving money for a down payment on a new home in Lake City or any of the surrounding communities (most people need to finance a home purchase, and a down payment could be as much as 20% of the home’s purchase price), you’re not alone.
In fact, most people find it incredibly difficult to save up money for a down payment. Unless you’re using a VA loan or an FHA loan—both of which require less than 20% as a down payment—you’re going to need to come up with some cash to purchase your next home.
So where do you even begin?
How to Save for a Down Payment on a Lake City Home
Don’t start saving just yet.
First, take a look at your bank statements and credit card statements. Pull up the last three months’ worth of statements so you can get a clear picture of where your money is going.
Start thinking about areas where you could cut your spending; if it would make sense to trim down your cable TV package or go with a smaller cellular plan, then divert that money directly into savings, then go for it.
However, it’s also a good idea to get a copy of your credit report. Under federal law, you’re entitled to one free copy each year from the three major credit reporting bureaus (TransUnion, Experian and Equifax). You can get yours from AnnualCreditReport.com, according to the Federal Trade Commission. If your credit isn’t in very good shape (the best interest rates go to people with high credit scores), it may make sense to work on that before you begin saving up money to buy a home.
Once you’ve squared that away, it’s time to start shopping for a mortgage (you can learn about mortgages here).
Are You Buying a Home in North Florida?
Call us at 386-243-0124 or contact us online. We’ll begin a custom search just for you.