Are you looking into buying a home in 2022? If that’s the case, consistent income, work, and credit aren’t the only factors to consider. Bringing cash to the closing table when buying a house is common. This includes a down payment and closing charges.

These mortgage-related costs are frequently the most significant roadblocks to homeownership. However, with careful (and early) planning, you can raise funds necessary to make your dream of owning a home a reality.

Here are some recommendations on how to save for a down payment or closing fees when going for a professional mortgage loan in Utah and applying for a professional mortgage loan:

Calculate The Amount Of Money You’ll Be Able To Save

Many buyers wonder, “How much should I save for a home purchase?”

Expressed, the amount is mostly determined by the purchase price and the financing program. An FHA loan necessitates a minimum down payment of 3.5%, while a conventional loan requires a minimum down payment of 5%. It’s crucial to understand that a down payment isn’t required for all mortgage loans. In addition, closing costs might cost anywhere from 2% to 5% of the loan amount.

One technique to “guess” how much to save is to look up the average sold price of nearby residences.

You may also use a mortgage calculator to determine how much you can afford based on your salary and then decide how much to save for a down payment and closing costs.

Mortgage calculators, on the other hand, only provide a preliminary approximation. Only your mortgage lender can tell you how much you’ve been approved for and how much you’ll need to bring to closing.

Make A Financial Plan

One of the first steps in saving for any major purchase, including a home, is to create a budget or spending plan. This is keeping track of your income and expenses to see what comes in and goes out.

Budgets can also help you spot bad spending habits and where you’ll need to cut back to boost your savings rate.

Spend Less and Save More

Make the most of whatever additional cash you receive throughout the year. Put this money toward your housing fund instead of spending it on amusement or recreation. A tax refund, a work bonus, or other unexpected funds could all be additional income sources. Also, if you get a raise at work, try to save 100% of the increase if at all possible.

Start A Side Business

Another strategy to quickly save money for a down payment or closing costs is to get a side hustle or part-time work. Let’s pretend you can make an extra $200 per week. If that’s the case, you’ll need an extra $10,400 every year for a down payment or closing costs (before taxes).

Remember that you may not be able to use your side hustle income to qualify for a professional mortgage loan. Job must be continuous, and you must have at least a two-year work history to use side hustle revenue.

Use The Money You Received As A Gift

You may be able to use gift monies to purchase a property, depending on the mortgage program. These funds may cover all or a portion of your down payment and closing costs.

Keep in mind that only acceptable contributors can provide gift monies. A parent, kid, grandparent, or sibling is an example. Gift money might come from aunts, uncles, nieces, nephews, cousins, and organizations.

You’ll need to submit details about the donor, such as their link to you and their bank account information. The donor must also provide a letter stating that the money is a gift. In other words, they don’t expect anything in return.


Possessing a home is a major life milestone. However, it cannot be easy to save and find a property within the desired price range with rising home prices. Even if there’s no way to foresee housing trends in 2022, don’t let growing home prices dissuade you from homeownership. The great news is that mortgage rates are still at historically low levels. A low rate allows purchasers to acquire more houses for their money, keeping housing costs down.

Contact the lending specialists at a mortgage company in Utah to start your home buying adventure this year and learn about other mortgage plans.

Luneta Home Loans is a mortgage brokerage firm representing you, not the bank. This means we look at banks and lenders that you can call yourself and wholesale lenders that don’t have sales personnel. Our goal is to get customers into their dream house as quickly as possible, whether they are first-time buyers or refinancing their current homes. Contact us if you’re looking for a professional mortgage loan in Utah