Own your own home
We all dream of owning our own homes and not paying rent. But if you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours. How could it be when you’re not even permitted to bang in a nail or two without a hassle? You feel like you’re stuck in the renter’s rut with no way of rising out of it and owning your own home.
Don’t Feel Trapped Anymore; It doesn’t matter how long you’ve been renting or how insurmountable your financial situation may seem. Some little-known facts can help you overcome the hump and transfer your status from renter to homeowner. With this information, you will see how to save for a down payment, stop lining your landlord’s pockets, and stop wasting thousands of dollars on rent.
6 Little Known Facts That Can Help You Buy Your First Home
Most renters’ problem isn’t their ability to meet a monthly payment. Goodness knows that you must complete this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent.
But saving for this lump sum doesn’t have to be as difficult as you think. Consider the following six critical points…
You can buy a home with much less down than you think.
Some local or federal government programs (such as 1st-time buyer programs) help people enter the housing market. You could qualify as a first-time buyer even if your spouse owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.
You may be able to get your lender to help you with your down payment and closing costs.
Even if you do not have enough cash for a down payment, if you are debt-free and own an asset free and clear (such as a car, for example), your lending institution may be able to lend you the down payment for your home by securing it against this asset.
You may be able to find a seller to help you buy and finance your home
Some sellers may be willing to hold a second mortgage for you as a seller take-back. In this case, the seller becomes your lending institution. Instead of paying this seller a lump total for their home, you would pay monthly mortgage installments.
You may be able to create a cash down payment without actually going into debt.
By borrowing money for certain investments to a specified level, you may generate a significant tax refund to use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both the home and investment will be yours in the end.
You can buy a home even if you have problems with your credit rating
If you can come up with more than the minimum down payment or secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.
You can and should, get pre-approved for a home loan before you look for a home.
Pre-approval is easy and can give you complete peace of mind when shopping for your home. Mortgage experts can obtain written pre-approval for you at no cost and no obligation, and it can all be done quickly over the phone. More than just verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application and a certificate that guarantees you a mortgage to the specified level when you find the home you want. Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mortgage and being stuck in the renter’s rut forever.
Typically there is no cost or obligation to enquire.
You should be aware of many essential issues that affect you as a renter. Why would you continue to lose thousands by throwing it away on rent when with your agent, you could take a few minutes to discuss your specific needs so that you can stop renting and start owning?
This conversation costs you nothing. And, of course, you shouldn’t have to feel obligated to buy a home when you review this. But by exploring your options and learning how you can afford a home, think about how prepared and relaxed you’ll be when you are ready to make this critical step.