Am I ready to buy or should I continue to rent?

Don’t Pay Another Cent in Rent To A Landlord …

Don’t Feel Trapped Anymore

It doesn’t matter how long you’ve been renting or how insurmountable your financial situation may seem.  There are some little known facts that can help you get over the hump and transfer your status from renter to homeowner.  With this information, you will begin to see how you really can: 

• Save for a down payment
• Stop lining your landlord’s pockets
• Stop wasting thousands of dollars on rent

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

The problem that most renters face isn’t meeting a monthly payment, but being able to accumulate enough capital to make a down payment.  Saving for this lump sum isn’t as difficult as you might think.  Consider the following 6 important points:

1.  Buy a home with much less down than you think

There are local and federal government programs (such as the First Time Buyer program) that assist individuals to get into the housing market.  Most people don’t know that one can qualify as a first time buyer even if a spouse has previously owned a home as long as the new buyer’s name was not registered.  Your real estate expert can offer programs that best suit your needs and qualifications.

2. Get your lender to help with the down payment and closing costs

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 asset.

3. Find a seller to help buy and finance a home

Some sellers may be willing to hold a second mortgage as a seller take-back.  In this case, the seller becomes your lending institution.  Instead of paying a lump sum for the home, one would pay monthly mortgage installments.

4. Create a cash down payment without actually going into debt

By borrowing money for certain investments, one may be able to generate a significant tax refund that can be used as a down payment.  While the money borrowed for this investment is technically a loan, the monthly payments can be small and the money invested in both the home and investment will be yours in the end.

5. Buy a home even with credit rating problems

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 looking for a home

Pre-approval is easy and 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 is as good as money in the bank.  It entails a completed credit application and a certificate which guarantees you a mortgage to the specified level when you find your home.  Consider dealing only with a professional who specializes in mortgages.  Enlisting a professional’s services can make the difference between obtaining a mortgage and being stuck in the renter’s rut forever.  Typically there is no cost or obligation to enquire.

There are many important issues that can affect you as a renter.  Why would you continue to lose thousands of  dollars by throwing it away on rent?  Contact our real estate professionals today to discuss your options!  This conversation costs nothing, and you shouldn’t feel obligated to buy a home.  By taking the time to explore your options and educate yourself on the home buying process, you will be prepared and relaxed to make this important step when you are ready.

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