When considering first-time homeownership or a new residence, the down payment can feel like a daunting portion of the process. Preparing by using simple tips can assist in removing anxiety, so you can enjoy this exciting time.

It is a common misconception that all down payments must come from your savings account. However, opening a savings account specifically for this purpose is a great first step. Setting up a direct deposit from your checking account to your savings account every month or every paycheck is a convenient way to build your balance without creating an extra chore to remember.

Another great way to save money with minimal effort is to revisit the interest rates on your credit cards or loans. Refinancing to a lower rate or transferring a balance to a card with a lower rate can provide monthly savings to add to your down payment account.

Many websites and phone apps allow you to set up goals and track your progress. This can be a good way to stay focused while viewing how much you have accomplished. Mint was voted the best overall budgeting app to download in 2018 by Balance.com and NerdWallet.

In planning for a down payment, it is also wise to consider potential closing costs. These typically run from 2-4% of the purchase price, but can occasionally be paid by the seller through negotiation.

At Fairway Independent Mortgage Fort Lauderdale, we are happy to review your credit report with you and analyze your financial situation. If you are suffering from rental exhaustion and ready to consider other options, give us a call today!