In this age of economic difficulty, not everyone is blessed with a high paying job. Unless you have just recently won the lottery, then you’re probably wondering about how you’ll get the money to buy that dream house. Read on for some tips.

First of all, you need to carefully revise your credit score and determine whether you would qualify for a great mortgage deal. If this is not your case, you will of course have to come up with more down payment money and you will get of course a smaller loan.

Find out what your credit score is and take appropriate steps to improve your score. Pay your bills on time, lower your credit utilization rates and keep existing credit lines open. A one-point difference in your score can literally cost you thousands of dollars in increased fees and higher loan rates; if your score is too low, you may not qualify for a mortgage at all.

Many lenders have a loan pre-qualification process. You complete an application with a lender, and they let you know how much of a loan you should be able to qualify for. The difference between the loan you qualify for and your purchase price will be the amount you need as a down payment.

Next, open a separate savings account that you can devote exclusively for your dream house. Set aside a certain percentage of your income that you can put monthly into this fund. If you have to tighten your belt so you can put money into this account, do so.

If, like most people, you tend to spend more in stores when you are using a credit card as your payment form, then put your cards away. Do not close out the cards, as that may adversely affect your credit score. Just put them in a drawer at home, don’t use them, and pay off any balances you are carrying. This will improve your credit utilization scores and also reduce fees associated with using credit cards.

If you have not already created a budget (or a spending plan), then it is past time to do so. Track your expenses and see what luxuries you can cut out. If you have outstanding loans, such as student or automobile, continue to pay them regularly.

If your income is just covering your expenses, and you have eliminated unnecessary spending, then you might consider getting a part-time job to increase your income, and then direct this additional income into your savings account. Saving up a down payment is possible, but it does require you to be diligent in your spending and saving habits.

This writer has been providing advice on saving money for the past six years. Moreover, this individual is fond of providing knowledge on New York real estate, including Jamaica Estates real estate as well as Flushing real estate.