A down payment can be daunting. You have to save up a lump-sum of money just to move into a home and get started on your mortgage. However, it doesn’t have to be difficult. With some planning you’ll be able to save enough for a down payment without any hiccups.

The typical down payment is 20% of the value of the house but there are ways to get a smaller one, especially if you have good credit. It’s best to talk to a mortgage professional about what kind of options are available for you. Whether you need to come up with $60k or just $6k, here are some tips that will help:

 

1. Cut expenses that you don’t need, but continue to pay off your debts. If you’re not paying off your credit card balance every month, that debt can pile up and disqualify you for a mortgage. Even if it doesn’t, the interest will cost you more in the long run.

2. Make a separate savings account dedicated entirely to your down payment. That way you’ll always know exactly how much money you have for a down payment, and you won’t be tempted to withdraw from it. Don’t invest in anything volatile (such as cryptocurrency): a bank account is the safest and surest way to save for a down payment.

3. Whatever you do, don’t cut corners. Don’t borrow money from anyone outside your immediate family as it may disqualify you for a home loan. If you acquire a large amount of money from an outside source, your lender may ask for you to explain it.

 

It can take a long time to save up for a down payment, but you’ll probably live in that house even longer. Be patient and don’t get too attached to a home before you have some money saved up. Remember: the more you pay on the down payment, the less you have to pay over time as interest.