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Tips to save your down payment? A Guide by eMortgage

your down payment

Tips to save your down payment? A Guide by eMortgage

Putting aside extra cash for a down payment can be overwhelming, especially if you’re a first-time home buyer. It can be simpler than it seems to follow the proper access to mortgage loans and seek professional guidance on types of loans. This webpage contains valuable tips to help you maintain the required amount for loan products. We’re bringing together the insights and facts of the entire mortgage process with tailor-made solutions by a professional home mortgage expert, eMortgage, to provide you with excellent knowledge.

With our full-size indulgences, our dedicated mortgage experts know how to make lower-priced savings with less difficulty. Our deep industry knowledge can guide you through the negotiations, documentation , credit reports, mortgage eligibility and approval process, making your dream home purchase a reality sooner than you think.

Understanding Your Down Payment Needs

Starting your journey to save for a down payment starts with understanding exactly how much you need. This quantity isn’t always the same for everyone; it changes based on what sort of loan you are looking at and the price of your dream home. This is where a loan guide comes in handy. A loan guide helps you manage your cash state of affairs and assists you in deciding on a down payment amount that you can comfortably set aside. They don’t forget the house you want to buy and the type of mortgage you intend for, ensuring your aim is achievable. Getting this tailor-made recommendation early on gives you a clear goal to get closer to.

One invaluable tool in your down payment planning is a mortgage calculator. This handy resource allows you to play with different scenarios, adjusting variables like the mortgage amount, interest rates, and repayment terms to see how they affect your down payment and overall loan cost.

Tips to Speed Up Your Down Payment Savings

Once you have a clear down payment goal, the next step is to figure out how to reach it. For example:

  • Set a Budget: Look at your spending and see where to cut back. For instance, if you spend AED50 a week on takeaways, reduce this to AED20 and save the difference.

     

  • Open a Savings Account: Choose an account with a high-interest rate. Putting your down payment savings in such an account means your money grows while you save.

     

  • Automate Savings: Try to set up a ‘direct debit’ to transfer a fixed amount to your savings account right after the salary day. This way, saving becomes a priority, not an afterthought.

     

  • Cut Unnecessary Expenses: Cancel unused subscriptions or memberships. If you’re paying for a gym membership you hardly use, cancel it and save that money instead.

     

  • Earn Extra Income: Look for ways to make extra money. This could be a part-time job, freelancing, or selling items you no longer need.

     

  • Save Windfalls: Put any unexpected money, like tax refunds, bonuses, or gifts, straight into your down payment savings. It’s money you weren’t counting on, so you won’t miss it.

     

  • Use Money-Saving Apps: Some apps round up your purchases to the nearest pound and save the difference. If you spend AED2.80 on coffee, 20p goes into your savings.

     

  • Downsize: If possible, move to a cheaper place or get a roommate to share expenses. The money saved on rent can go directly into your down payment fund.

     

  • Government Schemes: Look into government schemes that help first-time buyers save for their down payment. Some schemes offer bonuses or allow you to save money tax-free.

     

save your down payment

The Benefits of Professional Mortgage Brokers

Professional mortgage brokers offer more than just mortgage advice. They can help you with:

  • Expert Advice: Mortgage brokers have in-depth knowledge of the market. They can recommend the best mortgage products for your situation, similar to how a personal shopper finds the best deals.

  • Saves Time: Instead of you searching through numerous lenders, a broker does this for you. It’s like having a personal assistant for your mortgage needs, saving you hours of research.

  • Access to More Options: Brokers have access to a wide range of mortgage products, including some that are not directly available to the public. Think of them as having a VIP pass to the best mortgage deals.

  • Better Deals: They often get exclusive deals from the lenders, thanks to their volume of business. This could be compared to getting a bulk buying discount that wouldn’t be available to you as an individual buyer.

  • Personalised Service: A broker tailors their service to your specific needs, much like a tailor-made suit, ensuring the best fit for your financial situation.

  • Help with Paperwork: They guide you through the application process, helping fill out forms and gather necessary documents, which can be as complex as putting together a puzzle without a picture guide.

Conclusion

Saving for a down payment is a significant milestone in the journey towards homeownership. While it may seem challenging at first, it’s entirely achievable with the right approach and professional guidance. By understanding your down payment needs, utilising tools like mortgage calculators, and seeking the advice of professional mortgage brokers, you can make informed decisions that bring you closer to your dream home.

As you start this exciting journey, keep in mind that you’re not alone. At eMortgage, we have Professional mortgage advisors and brokers who guide you every step of the way, from initial savings to final purchase. With our help, you can confidently navigate the mortgage process and secure the home of your dreams.