Tag Archives: down payment

6 Ways to Save for Your Down Payment

A 20% down payment is a significant chunk of change. But with enough time to prepare and a little bit of creative budgeting, you’ll be able to save up for your new home sooner than you think. Follow these helpful budgeting tips to get started!

Break Down Your Budget

Closeup of the black and white number keys on a basic calculator.While it’s never a bad idea to start saving for a down payment, it’s an even better idea to analyze your budget before you consider a home purchase. This will help you set realistic expectations and concrete goals.

First, make a list of all of your necessary monthly expenditures — rent, power, water, phone service, student loans, etc. Add these expenditures up and subtract them from your monthly take-home pay. Then, look at everything that is left over and consider what to cut back.

After you’ve taken a look at your spending, determine what home price range (and, consequently, a 20% down payment) you could comfortably afford based on your current monthly budget. Our handy mortgage payment calculator might help! Continue reading

Before You Apply for a New Mortgage…

What to Do Before Applying for a New MortgageMortage Application for Ann Arbor Home

The Ann Arbor real estate market is starting to heat up. Spring is here, interest rates are low, and there are still many great deals to be had. With the tumultuous past few years the mortgage industry has gone through, the guidelines for new mortgages have become very stringent. Here are a few tips that can significantly increase your chances of getting a loan approved for an Ann Arbor home.

  1. Clean up your credit now. The better your credit score, the better your interest rate. Your credit score must be at least 680 to obtain a prime loan and over 720 for the best rate. There are many online sites to get copies of your reports. Know what’s on there and what you can do to improve your score before applying for a loan. Continue reading