Don't pay another cent in rent to your landlord!
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 transfer your status from renter to homeowner. With this information, you will begin to see how you really can:
- Save for a downpayment (if needed)
- Stop lining your landlord's pockets and,
- Stop wasting thousands of dollars on rent, month after month after month.
The problem that most renters face isn't your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already!
The problem is accumulating enough capital to make a downpayment on something more permanent. But saving for this lump sum doesn't have to be as difficult as you might think. Consider the following 6 important points:
- 1. You can buy a home with much less down than you think. There are some local and federal government programs (such as 1st time buyer programs) to help people get into the housing market. Ensure that your Real Estate Agent is informed and knowledgeable in this important area and can offer programs to help you with your options.
- 2. You may be able to get your bank or loan officer to help you with your down payment and closing costs. Once again, your Real Estate Agent and your lender will be able to advise you in this area.
- 3. 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 the lending institution. Instead of paying this seller a lump-sum full amount for his or her home, you would pay monthly mortgage installments.
- 4. You may be able to create a cash downpayment 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 downpayment.
- 5. You can buy a home even if you have problems with your credit rating. 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. You can, and should, get preapproved for a home loan before you go looking for a home. Preapproval is easy, and mortgage experts can obtain written preapproval for you at no cost and no obligation, and it can all be done quite easily over the phone. Contact your Real Estate Agent for details on how to get started.
There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands by throwing it away on rent when with your Agent you could take a few minutes to discuss your specific needs so that can stop renting and start owning.
This conversation costs you nothing. And of course, you are never under any obligation to buy a home just because you talked to someone. But by taking the time to explore your options, and learn about the ways you can afford to buy a home, think how prepared and relaxed you'll be when you are ready to take this important step.
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