Having a healthy amount in your savings account could lead to greater financial security even after you purchase your home. The down payment: It’s the biggest test of our ability to save money most of us will ever face, and one that stands between us and our ability to become a homeowner. It can be tricky, but down payments can be seen as an opportunity and less of an obstacle. The more money you have to put down, the more choice you’ll have in terms of purchase price range and monthly payment amount. And building a little cash cushion will definitely give you piece of mind once you’re in your home. Here are top five secret sources to help you arrange the down payment money;
Local Programs: Operated by local governments, primarily cities and counties there are several programs. Some operate exclusively for buyers with low or moderate incomes; others are dedicated to helping first-time homebuyers. Many of these programs have a limited pool of funds that may run out over the course of the fiscal or calendar year, and almost all of them require buyers to jump some major hoops, such as completing homeowner education classes and choosing a home that meets specified criteria. Some state and local programs in areas that were particularly hard-hit by the 2008 recession also offer bonuses for buyers who agree to purchase a bank-owned home or a property in a designated economic recovery zone. Google your city, county, and state websites, and look for links for residents, housing, or homebuyer assistance to find these programs. And be sure to trust only websites that end in .gov — scammers posing as governmental agencies abound. Local real estate agents and mortgage brokers often know the ins and outs of these programs too.
Friends & Family: Borrowing money from family members, relatives and friends is the best way to arrange for the down payment on a home as this not only allows some flexibility; but also helps you to stress less and focus on the other arrangements that require your attention.
Ask Your Employer: Large employers or even smaller companies seeking to lure top-level recruits do something similar: relocation assistance programs. Check in with human resources to explore whether any such assistance is available — and if you happen to find yourself a hot prospect on the job market, consider trying to negotiate relocation or down payment assistance into your offer package.
Budget: This is something that only you can control so make as much as cutbacks as possible and if anything seems to tempt you spend except the bare essentials think about how close you are to your dream home and is this little purchase worth the temptation and all second thought will vanish in no time.
Borrow: There are situations in which it may make sense to borrow a few thousand dollars from yourself you don't understand how? You can dip into your retirement funds they are the only source that can hold you up in emergency situations.
How have you come up with down payment money? Yard sales, consignment stores, selling online? Share in the comments below!