A recent study revealed that many of today’s millenials or “generation Y” young adults are thinking about purchasing a brand new home, but they are fearful about what it takes to make it happen. The top concerns were how to save for a down payment, how much will be needed for a down payment and what the process is behind applying for and actually purchasing real estate. First time home buyers have a lot of questions – and rightly so. The process behind purchasing a house and getting a loan can be complicated, but it helps when you have your New Bedford credit union on your side.
Many first time home buyers in Massachusetts are turning to their local financial institutions to get a credit union home loan. In addition to providing ways to help them save for the down payment through various credit union savings account options, and providing ways to purchase a new car through a credit union auto loan, being a member can really help when it comes time to make the purchase. Additionally, your local customer service representative at St Anne Credit Union can help you to figure it all out, get your ducks in a row and be ready when you finally locate that perfect house that you want to make into a home.
Saving for a Down Payment
Industry standards really set the tone for the amount of money required to pay for a down payment when you buy a home. Most lenders require a payment between three and twenty-five percent of the actual purchase price. However, providing a larger down payment can help to reduce your monthly payment, interest rate and offer you some extra perks. It pays to speak with a representative about getting a credit union home loan to find out what you can do ahead of time to make it work to your advantage.
It is also a good idea to put some money aside to save for your first few months in your new home, especially if you will need to purchase new furniture, replace carpet or flooring, get the home repainted or do any other repairs. Keep all of this in mind when you start saving money at your local New Bedford credit union. Ask about money market accounts, certificates of deposit and other options in addition to the standard Share credit union savings account to help grow your money even faster.
Ways to Boost Your Savings
A quick search on the internet will yield you lots of great tips that will help you to increase your savings. Even the blog here at St Anne Credit Union can help you in that regard as well. There are lots of different ways to save your money – especially if your goal is to get a credit union home loan to purchase a new home in the future. Setting money aside in your credit union savings account is a great way to protect it from “accidental spending” or splurges. This is a great way to save toward a down payment for new car to make your credit union auto loan payments more affordable. Speak with your New Bedford credit union representative for even more tips and ideas to help you save for your future.
Top ways to save money you didn’t know you had include:
- Skip just one or two of your daily lattes or coffees at that expensive coffee shop and put away an extra $5-10 a week, which can add up to $260-520 over the course of a year. Invest in a good coffee maker and a re-usable cup to save even more by making your morning coffees at home!
- Start packing your lunch for work instead of going out to eat. You could save as much as $6-10 a day, which can add up quickly over the course of the year. Some have reported saving as much as $1000-1500 in a year.
- Consider carpooling to work with a co-worker or friend who also works in the same area. Not only will this help to save gas, parking fees and other expenses, but you will also help your local community by doing your part to reduce pollution in the area. The amount that you save will depend on how far you drive and how much it costs to commute for each day that you work.
- Sign up for a monthly movie program, such as Amazon Prime or Netflix, instead of going out to the theater every weekend. You will pay less than $10 a month for these services and have access to unlimited movies and programming, which is much more affordable than paying $10 or more a person for each time that you go to the theater.
Use your online access to move the money you would have spent on these items from your checking to your savings or write down the savings and move it over on a weekly or monthly basis. Another way to make sure you put the savings aside is to use cash and give yourself an allowance. Whatever you don’t spend on coffees, lunches, gas and movies can then be deposited into your credit union savings account to save for your credit union home loan down payment.
How to Join St Anne Credit Union
If you are interested in learning more about what it takes to join your local New Bedford credit union, give us a call at 508-993-0011 or stop by our location on Union Street. We can give you information on how to join our membership with a credit union savings account and can help prepare you to get a credit union auto loan or credit union home loan in the future.