5 Steps to save for a new home

5 Steps to Save for a Home
4/7/2022

Saving for a home may seem like a daunting goal to tackle, but with a plan of action, you can start to make your dream home a reality.
 
 Here’s how: 

Set realistic goals. 

Calculate the cash you will need on-hand when you close on your house. These may include closing costs, the down payment, and other expenses. Your down payment requirement is set through the mortgage lender, so check with them to see what works best for you. Understand your limitations when setting a budget and goals. Don’t spend more than you can afford and consider how much you can save before you start actively looking for a house. 

Our partner, Mortgage Center, offers mortgages with several different down payment options, including a zero down payment or FHA loan option, even a PMI Saver loan for those who want a conventional mortgage without the twenty percent down payment. 

Keep an eye on your credit score. 

Before you apply for pre-approval on a mortgage, work on solidifying your credit score. Pay off any outstanding debts you may have on your credit cards. Lowering your debt and raising your credit score can help you secure a better mortgage rate. If you’d like to receive an up-to-date credit score, you can get a free credit report every year from one of the main credit bureaus: TransUnion, Equifax and Experian. Additionally, you can access Credit Coach, Powered by SavvyMoney right from within the ChristianFCU Banking app. This can help you get a good perspective on where your credit stands. 

While you’re reviewing your outstanding credit, be sure not to close any credit cards or any loans if you can avoid it. It’s important that your credit tradelines remain open and paid on time. 

Evaluate current expenses

When you’re in the process of saving up for a home, finding ways to reduce any unnecessary monthly bills is key. Consider taking a look at any unused subscription services to lower your monthly costs. Taking a couple months off of any product-related subscription services or that weekly latte run can save you big time when it comes to your home savings. 

Save any surplus cash. 

Save any bonuses, tax refunds, or other cash increases to set aside for your home savings. These wins will not only help your savings amount jump, but give you even more motivation to keep working toward your goals. 

A Christian Financial Save to Win certificate or Money Market can help you earn even more interest (and even prizes!) on your lump sum. 

Track your progress. 

Keep up with your progress each month. You can watch your spending using Christian Financial's Money Management and see where you can improve. Don’t lose sight of the goal and celebrate your wins as you reach them. 
 
 
Contact Us:

35100 Van Dyke Ave
Sterling Heights, MI 48312

586.772.6330

CFCU Routing & Transit Number: 272484289
 
Download our Mobile App





 
Facebook Social NetworkInstagramTwitter
Christian Financial Credit Union was founded in 1950 and has grown to serve anyone who lives, works,
worships or goes to school in Macomb, Wayne, Oakland and St. Clair Counties. 
 
© 2006-2022 Christian Financial Credit Union  All Rights Reserved.
Federally insured by the NCUA
Equal Housing Opportunity Lender