Finance
WANT TO BUY A HOME?
Key Ways to save for your down payment
I
f you dream of owning your
own home but don’t think you
have enough money for a down
payment, take another look. You
could already have enough, or
you might be closer than you think.
In Wells Fargo’s recent “How America
Views Homeownership” survey, 23
percent of people who do not currently
own a home say one reason is that it
is difficult to save enough money for a
down payment. But many consumers
overestimate how much they need.
Four out of 10 respondents believe a
20-percent down payment is required.
In reality, you may have other options.
Some financing programs allow qualified
homebuyers to put down as little as 3
percent. A home mortgage consultant
46 GBSAN.COM | JUNE 2018
can help determine what you may qualify
for. They wil l also help you understand
how much you need for a down payment
and other upfront costs of buying a
home, and for ongoing expenses such
as insurance, homeowners’ association
fees and unexpected repairs. Here are
some savings tips to consider:
1. Pay down credit card and loan
debt so you save money on interest.
This may also boost your credit score
and lower your debt-to-income ratio,
which helps when applying for a
mortgage. To tackle this, start with the
account with the highest interest rate,
pay more than the minimum, make
payments every two weeks instead
of monthly, and consider setting up
automatic payments.
B Y LYDI A HUAR D ,
SAN DI EGO MA R K E T M A N A GE R ,
WELLS FAR GO H OM E LE N D I N G
2. Track your spending habits and
evaluate what you can cut. Many helpful
budgeting apps are available. Small
changes can add up to big savings – for
example, bring your own coffee or lunch
more often, carpool when possible, get
your hair cut less frequently, or cook and
watch movies at home more than going
out.
3. If you get a raise, bonus or tax
refund, stash it away for your future
home purchase instead of spending it
now.
For more information about buying a
home, visit
www.wellsfargo.com/mortgage.