Down Payments on Homes Getting Harder To Afford
One of the most prominent issues when it comes to purchasing a home, especially for first time buyers, is affording the down payment of the home. Money issues are the most prominent of the issues on the path to homeownership, so much so, that 80% of millennial renters want to buy a home but say that cannot afford the process.
Therefore, we have some money gaining tips that may help you progress towards buying that home!
- Down Payment Assistance- There is more than one way to get down payment help that doesn't involve asking your parents. Many people may not think they are eligible for other forms of assistance, but the grants and other forms of assistance are not just for low-income borrowers. There are some grants and assistance programs that have unexpectedly high-income caps, which could end up being the difference between having a home now, or waiting a while.
Check your area and services, some may offer up to 5% of a mortgage as a grant that will cover the closing costs of a home. Some loans have specific terms attached that require repayment only if you sell, refinance, or vacate the property within a specified time limit.
- Move Around Some Money- Some credit card companies offer bonus cash for opening a checking account with them and some more cash for making a savings account. While this will generally add up to somewhere near $350 depending on the credit card company, it is an option. Another option may be to transfer a credit card balance to a new card with lower interest rates, providing a bit of ease on the financial burden. Check with your bank to see their offers for balance transfers.
Be warned, if you are trying to pay off an existing balance at a higher interest rate, check with the lender before to take any new credit card if you’re looking to buy a house soon, as this may ding your credit, and make it harder to get a loan.
- Sell!- When moving we often have a great many things we won't be able to take with us, or simply want to get rid of. Get ahead of the game and go through your items before having to move and decide on what you do not want or need and start selling it now. This will help give some extra financial cushion, and depending on what you’re selling, could really help things start moving along. From gold and jewelry to silverware and old phones, you can fetch a couple dollars here and there. When it comes to things like furniture, art, and designer clothing, a consignment shop would be the better option as they will offer more generally than places like Craigslist.
- Switch Providers- Switching your service providers to others that offer better savings would be a smart move anytime in life, but especially when saving for a home. There are almost always offers available but usually they are saved for new customers rather than existing customers.
If your attempt to get a better package with customer service doesn't go very well, call back and ask to be transferred to the loyalty department. They will most always be willing to work out something so that a win-win situation can begin.If you do change providers, but plan to move out in a couple months, they tend to have moving packages that will include free installation and transfer to the new location, asking is always worth it!
- Ask for a flexible schedule- Depending on your situation, you can save money on gas, tolls and even babysitters one or more days a week by asking your boss for a flexible schedule to work from home. This will reduce your drive time, and lower the payments to the daycare so that you can save a little money faster. Obviously this is not an option with every job or career, but it is worth an ask.
- Plastic Bottles- If you have a lifestyle that uses plastic bottles you can do more than just recycle them, you can sell them back for a little extra cash. This by no means will be a life-changing amount of money, but every bit helps. Recycling centers will pay for plastic bottles and offer various amounts per bottle depending on the type of plastic and how many you have.
For example, Michigan pays 10 cents to a bottle whereas most other states pay around 5 cents for each bottle, and some may prefer you keep the cap on while others prefer no cap. Check the recycling center and learn about your options.
- Negotiate closing costs into the deal- Closing costs are unavoidable, but if your able to negotiate a deal where the closing costs are attached to the mortgage, you will be able to reach your goals faster. If you’re really a smooth talker, you can try to negotiate a way for the seller to pay the closing costs, saving thousands of dollars off the bat!
- Research Alternative Mortgages- Different loans give different options for payments and interest rates. Some can greatly cut down your down payment and save you money monthly. USDA loans for homes located in rural area may require no down payment, VA loan offers through the Department of Veterans Affairs can help active-duty military members and family buy homes with zero down payment.
Kontor Realty Group
Options are there, they just need to be found, and while some are right in front of your everyday life, others may take a little digging to find. If your still having issues, it is also good to talk with your real-estate agent to see what knowledge they have on the area that may work with your situation.
give us a call at Kontor Realty, we keep you ahead of the curve so that your home is found in a timely manner and at a reasonable price!
Give us a call or send us an email and let us use our extensive knowledge to find you the property your looking for.