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6 Little Known Facts That Can Help You Buy Your First Home

It just might be your dream Ė to stop paying rent and own your own home. Most renters reach a point where they no longer want to feel trapped within walls or a house or apartment that doesnít belong to them. It gets tiresome not to be able to hang something on the wall without worrying that a landlord might object. Sometimes it feels like a rentersí rut with no way of rising beyond it and owning your own home. It is possible, however. There are many issues you need to be aware of that affect you as a renter. You may be already thinking of the downside of paying thousands of dollars on rent. Contact your real estate agent. Allow them to take a few minutes to discuss your specific needs so that you can discuss how you can stop paying rent and begin paying for a property you own. You will not be obligated to buy a home at the time this conversation takes place, but by exploring your options youíll be prepared and relaxed when you are ready to take this important step! Youíve been paying your monthly rental costs, so you know that you can come up with a similar sized mortgage payment. The problem that most renters face is coming up with a down payment. But saving for a down payment doesnít have to be as difficult as you might think. Consider the following 6 important points:

 

1. You might not need as much as you think

Government programs (such as 1st time buyer programs) exist to help people get into the housing market. You may qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Your real estate agent would be informed and knowledgeable in this important area and can offer suggestions to help you with your options.

2. Your lender may 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 freehand 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.

3. Some sellers are willing 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 to him.

4. Itís possible to create a cash down payment without 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.

5. Itís possible to buy a home even if your credit rating is questionable

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.

6. Get pre-approved for a home loan before you go looking for a home

Pre-approval 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 quite easily over-the-phone. More than just a verbal approval from your lending institution, a written pre-approval can be obtained. It entails a completed credit application, and indicates a specified level when you find the home youíre 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 renterís rut forever. Typically there is no cost or obligation to enquire. Your real estate agent is able to introduce you to a mortgage specialist.

 

 

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