Keeping monthly repayments low and affordable is the key to successful home ownership. Other than keeping your credit score high and ensure a healthy financial history, you need to put down a healthy deposit when applying for a mortgage in Utah.
Ideally, your down payment should be at least 20% of the home’s value. As such, it translates into a sizeable chunk of money. However, with a little bit of creativity, you can raise the deposit for without too much strain.
Tap into your Savings
Other than raiding your savings account, you can make the most of the savings mandated by law. You can take a loan against your company’s savings plan and borrow against your 401k. You must not resign, however, since you will need to pay back the money later. The costs might be a little bit higher since you will be making the payment with after-tax dollars. Alternatively, you can let the internal services revenue come to your aid. The taxman allows you to use up $10,000 of your IRA funds when buying your first home. Couples have the potential raising a combined total of $20,000 when purchasing their first home together. The IRA waives the penalty for early withdrawal to help you secure your home affordably.
Get a Part Time Job
While cutting down on expenses remains a common way of saving money towards a house deposit, you have another alternative. If you cannot find affordable rates to make changes in your lifestyle, you should seek to increase your income. Other than asking for a raise, you can look for an extra source of income. You can pick up an extra shift, monetarize a hobby, or find a part-time job. Alternatively, you can start an online consultancy and offer services to people in need of your specialty. Make sure to channel all proceeds to your home deposit.
Putting down a sizeable home deposit is a sure way of lowering the monthly repayments on your mortgage. With a little bit of creativity, you can raise the down payment with relative ease.