Don’t Pay Another Cent In Rent To Your Landlord…..
It’s a dream we all have-to own our own home and stop 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 when you’re not even permitted to bang a nail or two without a hassle.
You feel like you’re stuck in the renter’s rut with no way of rising up 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. The truth is, there are some little-known facts that can help you get
over the hump, and transfer your status from renter to homeowner. With this information you
will begin to see how you really can:
- Save for a downpayment
- 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
The problem that most renters face isn’t your ability to meet a monthly payment. Goodness
knows that you must meet 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 might think. Consider the
following 6 important points:
- You can buy a home with much less down than you think.
There are
some local or federal government programs (such as first-time buyer programs) to help
people get into the housing market. There are several programs that allow for no down
payment, or will match a homebuyer dollar for dollar. Finding a qualified mortgage
professional that is aware of such programs will give you a good idea of how much money
you will need to have.
- You may be able to get your lender to help you with your closing
costs.
If you have the money for a down payment, but not closing
costs, your lender may be able to give you a credit to help cover these fees. If you
have good credit and income, but seem to be a bit short on cash, this is a viable
option.
- 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-sum full amount for his or her home, you would pay monthly
mortgage installments. In addition, a seller can contribute to your closing costs
through the proceeds they receive from the sale of their home. Having your own expert
Real Estate agent negotiate this for you is very wise, and could mean the difference
between a sale or not.
- 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 be able to generate a significant tax refund for yourself that you can 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 home and investment
will be yours in the end. Many companies’ 401K accounts will allow their employees to
borrow money solely for the purpose of purchasing a home with no penalties. Check with
your company’s HR Representative to see if your company offers such a program.
- 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
can 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. In recent years, several products have opened up to allow credit challenged
home buyers the opportunity to purchase a home and re-establish their credit. Finding a
qualified mortgage professional that is aware of such programs is of great benefit.
- You can, and should, get preapproved for a home loan before you go looking for a
home.
Preapproval is easy, and can give you complete peace-of-mind
when shopping for your home. Mortgage experts can obtain written preapproval for you at
no cost and no obligation, and it can all be done quite easily over-the-phone. More than
just a verbal approval from your lending institution, a written preapproval is as good
as money in the bank. It entails a completed credit application, and a certificate which
guarantees you a mortgage to the specified level when you find the home you’re looking
for.
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 inquire.
There are many important issues you should be aware of that affect you as a renter. Why on
earth 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 at the time you review this. But by taking the time to explore your options, and
learn about the ways you can afford to buy a home, think how prepared and relaxed you’ll be
when you are ready to make this important step.