For first time home buyers one of the most difficult hurdles is the down payment, that is why when forgivable down payment assistance programs are rolled out we try to let everyone know! In the past, we have witnessed firsthand the benefit that many families experienced from programs like these in other states. In fact, one year we had about 20 families who had been working towards owning a home by trying to save up funds but the “finish line” seemed far off. However, with the assistance of the forgivable down payment assistance program, they were reenergized to reach that finish line!
In today’s economy, it’s harder than ever for renters to save up the money that they would need for a down payment on a new home. Luckily, there is a whole bundle of ways to become more money savvy! Here are my top 5 simple ways to save money for the down payment on your first home!
Who doesn’t love the television show, Fixer Upper? Chip, Joanna and the Gaines children have found their way into the hearts of many in their handful of seasons on HGTV. Their warm personalities certainly don’t hinder their lovability but we watch because their ability to “take the worst house, in the best neighborhood and turn it into a client’s dream home” is spectacular! We love to see a house that easily could have been looked over become a beauty; not to mention, how much the value of the home increases. But how do they finance these projects? If you wanted to improve your home through renovations, how would you finance it? There are a few options; credit card, savings, HELOC (home equity line of credit) or a renovation mortgage.
Cutting a house in half sounds like a ludicrous idea but if you are going through the process of divorce you just may feel like this would be the easiest way to move forward. Divorce has enough stress surrounding it that even the thought of having to deal with the nuances of adjusting the mortgage arrangement could force one to put it off several months or even years. By doing this, you may end up having more heart ache and problems in the long run.
Hobby Farm. That was a new phrase to me just about a year ago. When first hearing it, one may envision a posh warehouse filled with paint or clay covered people trying to find a hobby that speaks to them. As much as I love that idea, this is not the hobby farm I’m going to share with you today. The hobby farm I’d like to introduce you to is one that allows you and your family the opportunity to cook a meal from the items you grew and harvested. One that gives you quieter nights and mornings filled with chirping birds. One that gives you room to roam, to grow, and to experience nature more fully.
Over the years we have found that the down payment requirement has left many people with questions; like how does a down payment impact your mortgage?
Let’s start with understanding what a down payment on a mortgage is; a down payment is the amount of money that you will pay out of pocket towards the purchase price of the home you are buying. Not only will it lower the amount needed for your mortgage but it also shows lenders, like us, that you are able to save money and are serious about the investment in your home.
Getting a mortgage can be intimidating and trying to wrap your head around all the numbers, financial terms, and paperwork can be enough to make your brain feel mushy—heck, the word mortgage is hard to spell. It should be spelled, “morgedge”, who is with me?! Don’t worry, Mr. Merriam Webster, I’ll save that fight to fight another day. My goal is to put any fears associated with getting a mortgage, to rest.
The process of buying a home can leave you with a lot of questions but what if you have questions before you even consider buying a home? You certainly aren’t alone. A lot of people find themselves wondering if they can purchase a home despite not being as prepared as perhaps they think they should be. The best way to find out if your circumstances prevent you from buying a home is to meet with a mortgage loan originator or apply online—this process is free and will give you the answers you need! However, if you aren’t quite ready to submit that application just yet, check out some of the questions we have gotten below, maybe you will have your question answered too!
While the mortgage process is generally the same for most home buyers, each person has his or her own experience—own trials, own timeline and own take on feasibility. So be wary when someone shares generalized ideas about the mortgage process they could be myths. I’ve included five myths which we have found some people accept as fact.
You’ve done it! You have decided to buy a home and stop renting! So now what? How exactly do you go about breaking up with your landlord? Leave a post it note on their door? Send a well-crafted text message? Just say, “It’s not you, it’s me”? While these are all viable break up options… although not recommended, they are not to be considered when breaking up with your landlord. As a renter, you entered into a contract with your landlord so if you are ending the relationship before the contract dictates then you are breaking the contract. So really what is most important when breaking up with your landlord and moving out is the timing.
