5 Tips for Saving for Your Mortgage Down-payment
| Down payment savings |
If you’ve decided to buy a house,
you know that it’s not just about securing the best rates on a mortgage; the
challenge for many people is securing the funds necessary for a down-payment.
And it can seem daunting!
But with some discipline and, yes,
creativity, it’s not actually that difficult.
1. Save money wisely. Just putting your
dollars into a savings account will probably not get you your down-payment very
quickly. Try and find a way to make your money work for you instead of just
sitting there. A money market account or a certificate of deposit can be good
options for mortgage down-payment savings.
2. Explore other options. Look into
programs offered by the FHA (Federal Housing Administration) or the VA
(Veteran’s Administration) to see if you might qualify for a lower mortgage
down-payment.
3. Use retirement funds. Some 401(k) and 403(b) retirement
plans allow you to borrow from them for a new home purchase.
4. Sell other property. If this isn’t your
first home purchase, then you can use the equity from the home you’ve just sold
as your mortgage down-payment.
5. Receive a gift. Not every mortgage
lender will allow for the down-payment to be a gift, though certainly part of
it can be and certain government-backed mortgage loans will permit gifts as
down-payments. Check with your mortgage counselor to see what your state and
situation allow.
You’ve probably noticed one source
of funding absent from this list: the use of credit cards. And for good reason!
It is never a good idea to use your cash-advance line for a down-payment. The
rate of this “loan” is the highest in
the lending business, and borrowing from your credit cards will push up your
debt load—possibly disqualifying you from the mortgage itself.
There are many ways to find the
down-payment you need when you’re applying for a mortgage. As your mortgage
consultant how!
Labels: down payment mortgage, down-payment, mortgage down payment, mortgage down payment requirements, mortgage lender, mortgage with no down payment
posted by Avrus Mortgage @ Wednesday, October 10, 2012
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