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Stop Paying Rent
We provide real estate services to buyers
and sellers in Pennsylvania (Berks County, Chester County, Delaware County,
Montgomery County, Philadelphia, Drexel Hill, Haverford Township, Havertown and Upper Darby) as well as in
New Jersey (Brigantine, Atlantic City, Ocean City, Camden County and Gloucester
County).
Do you feel trapped about your never-ending rental
payments month-after-month?
Do you want to stop paying rent now?
The biggest problem many people face when making the move from renting to owning
a home is the down payment. You’ve been making regular payments every month for
rent and can’t seem to accumulate enough capital for down payment for a more permanent home.
Many times homes in your area appreciate in value faster than you can save. You
should explore all possibilities and make every effort to purchase a home now
and begin benefiting from the home’s appreciation and the income tax deduction
that come with home ownership. But saving for your down payment doesn’t need to
be the mountain you’ve made it out to be. Your agent should also be able to
present to you with the cash requirement to own a home, as well as the
benefits of owning versus renting -- in quantifiable form.
The Federal Housing Administration (FHA) or the Veteran’s Administration (VA)
and many other government programs or grant programs are available for
homebuyers with zero or little down payment. Hundreds of thousands of homebuyers are
realizing their dream of home ownership every year and you can too.
1. You can make a much smaller down payment than you think.
Certain government programs, such as first-time
buyers programs, are intended to assist people in getting into the housing
market. Even if your spouse is a former homeowner, as long as your name was not
on a home loan, you can still qualify as a first time buyer. It’s vital that
your real estate agent has knowledge of this area and can provide you with
relevant information. Ask your agent to present you with the calculation of
cash requirement to own a home as well as the quantification of the benefits
of owning versus renting as it applies to your particular case.
2. Your lender may be able to help with your down payment and closing costs.
Even if you do not have enough cash on hand to
make a down payment, provided you own an asset (car, for example) free and clear
and have no debt, your lender may be able to secure a loan against that asset to
cover the down payment. Your agent may even be able to negotiate for the seller
to pay for part of your closing costs.
3. A seller may help you buy and finance your home.
Some sellers might consider holding a second
mortgage for you in what is called a “seller take back.” Under these
circumstances, the seller acts as a lending institution. Rather than a large
lump sum payment, you pay the seller a monthly mortgage installment.
4. Create a cash down payment without going into debt.
There are ways to borrow money for certain
investments that can generate major tax refunds that you can use as a down
payment for a new home. While money borrowed for these investments are
technically a loan, the monthly amount paid can be small, and the money in both
the investment and the home will be yours when all is done.
5. You do not need perfect credit to buy a home.
Provided you can come up with more than the
minimum down payment or can secure a loan using other equity, many lenders will
consider you for a mortgage. If you have a less-than-perfect credit rating,
seeking a seller that will take back the mortgage can also be very helpful.
6. You should get loan pre-approved before shopping for a home.
It is very easy to get pre-approved and by
doing so, you can shop for a home in peace. Mortgage professionals can obtain a
written pre-approval in very little time, often over the phone. A written
pre-approval certificate is like money in the bank. All it takes is a completed
credit application and a certificate that guarantees you a mortgage to a
specified level when you find the home you are looking for. This also
strengthens your bargaining position when competing with other buyers on the
home you want.
You should only work with a professional who specializes in home mortgages.
Their services can make the difference between obtaining a home loan or being
trapped paying rent forever.
Choose your agent wisely. Working with a full-time professional real
estate agent is a must. Choose your agent by asking questions of him or her.
Find out how knowledgeable they are about houses currently for sale in your
price range and also of houses that have recently sold. Can your agent recommend
a good lender that has the reputation of excellent customer service and low
rates to assist you with financing a new home? Does your agent ask questions of
you in order to have a full understanding of what you are looking for to help
you locate the most home for the money?
To receive
your FREE copy of Homebuyer's Handbook or Homeseller's Handbook, click here.
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