Don't pay another cent in rent...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 help you go from being a renter to being a home owner. 

Here are 6 little known facts that can help you buy your first home

The problem that most renters face isn't the ability to meet a monthly payment.  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 6 following points.

1.  You can buy a home with much less down than you think.

There are some local government programs, such as 1st time buyer programs that help people get into the housing market.   You can qualify as a first time buyer even if your spouse has owned a home before.  There are programs that will even provide the down payment. 

2.  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, your lending institution may be able to lend you the down payment for your home by securing it against this assets.

3.  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 investment is technically a loan, the monthly amount paid can be small and the money invested in both home and investment will be your in the end.

4.  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 the seller a lump sum full amount for their home, you would pay monthly mortgage installments.

5.  You can buy a home even if you have problems with your credit rating.

If you can come up with more that the minimum down payment or can secure the loan with other equity, many lending institutions will consider you for a mortgage.  Alternately, a seller take-back mortgage could also help in this situation.

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

Pre-approval is easy, and can give you 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 easily over the phone.  A written pre-approval is as good as money in the bank.  It entails a completed credit application, and a certificate which guarantees you a mortgage for the specified amount you have been approved for;  it also ensure the interest rate will not change. 

Dealing with a mortgage professional that you trust is very important.  It can be the difference between obtaining a mortgage, or being stuck in the renter's rut forever.  Typically there are no cost or obligations to enquire. 

If owning your own home is one of your dreams, take a few minutes to discuss your specific needs with me and I can show you what options are available to your.  This conversation costs you nothing, and you shouldn't feel obligated in anyway.  Call me today and get the process started and you may find that owning your own home is more than a dream, it could be reality!

Kyla Vavala

Kyla Vavala

Sales Representative
CENTURY 21 B.J. Roth Realty Ltd., Brokerage*
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