Budget

Saving for a down payment is an important step in purchasing your future home. Be sure to set a realistic goal, then start saving. Here are a few helpful tips:

1. Put a little away each month.
   Consider the minimum amount of income you receive each month compared to any debts you have such as utilities, rent, medical payments, etc. Commit to putting away a percentage of the leftover amount in savings each month.
2. Create a monthly budget calculator.
   Split your debts into types, such as installment and revolving debts. Mark down the due dates for each payment. Note seasonal spending, such as holiday or back-to-school. By doing this, you can plan for expenses and decide in advance how much you are willing to spend on each event to stay within your budget.
3. Reduce unnecessary expenses.
   Minimize spontaneous spending to help you stay within your planned monthly budget. Things like writing down and sticking to a grocery list, cutting out coffee runs, and avoiding new charges to your credit card are great ways to stay on track.

Payment history, total debt, credit utilization and types of credit lines on your report can all contribute to your credit score. When applying for a loan, it is a good idea to check your credit report so you know what your credit history will look like to a lender. Here are some helpful tips that you may consider to establish a favorable credit history:

If you have little to no credit history:

• Try a secured credit card, where your credit limit is determined by the required security deposit.
• Take out a credit-builder loan, where the lender deposits the loan amount in a savings account. The and the borrower then makes fixed monthly payments toward the loan principal and interest to build a payment history and boost savings over time. After all payments are made, the borrower then gets access to the loan amount.
• Become an authorized user on the credit card of a family member with a high credit score and a reliable repayment history.

To improve your credit score:

• Pay your bills on time
• Set up automatic payments
• Use credit cards wisely
• Avoid applying for more credit than you need
• Borrow or charge only what you can afford
• Keep your main credit accounts open
• Check your credit report for inaccurate or fraudulent information
• Talk to a credit counselor for help making a plan to manage your debts

Loan specialists can help with all your loan-related questions. They are knowledgeable about all the different loan types that are available and are licensed by the state to explain the interest rate, APR and terms of different loans you might qualify for. When you qualify for a home loan, they will contact you to discuss the financial terms and requirements, and they will also be available to answer any questions you have throughout the process.