Cost Efficient Ways To Buy A Home
Buying a Home
It can be very exciting to buy your first home. There is a sense of pride in ownership…in paying toward something that has the potential to increase in value. However, it can also be a little frightening when looking at the cost of a down payment. It’s definitely something that requires a budget to make possible.
Start with a plan of making a savings account specifically for a down payment on a mortgage. A down payment is a percentage of the home’s sale price that is paid up front, with monthly payments after that. Figure on paying 20% of the asking price, and put every extra penny into this account. It may take a bit, but if you cut down on other expenses, your savings will continue to increase.
Raising the initial down payment is what scares a lot of people off of putting the plan to buy a home in motion. However, if you look around at what you already have…there may be items that can be sold for cash that will go toward saving for the down payment.
Stay within your price range. We all would love to have the home of our dreams..but sometimes we can’t afford that. If nothing else, you can buy a simple home and rennovate as funds become available…create your own dream home on what you can afford. There is also the issue of taxes and insurance, another good reason for not going above your means.
House for Sale
Many people are afraid to attempt borrowing the money to buy a home because of past credit history that will raise a red flag to a bank or mortgage company. If this is the case, consider getting a co-signer. If that is not possible, one might look into land contracts or financing directly from the seller. Some will go contract-for-deed, if they are really wanting to unload the home, and the qualifications are only as strict as the seller wants them to be.
It may take some time and some planning…but you can know the pride of being a homeowner. You’ll be paying toward something that is yours rather than paying money each month to rent.
By Angela Sangster copyright SaveMoneySpot 2010.
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