Do you need to put down 20% to own a home? You’re probably thinking it will take years to finally save up enough to afford that size of a down payment. But for most of us, home ownership is something we all want at some point in our lives.
Taking the leap to buy a home can be a rewarding first-time experience. But it is often nerve-racking if you’re not prepared to get the most out of the buying process. You can get a proper jump start now before watching a hefty down payment go into the hands of the bankers.
You don’t want to give your money to banks as much as they don’t want to give money away. Keep the loaners at bay by knowing how to secure the amount you need to own a home. Start saving as much as you can, and watch how you’re spending your money. Find a way to get into the market.
We’re going tell you how to land your dream house and how to get the largest bang for your buck. You’ll learn about the best options for financing. You won’t have to worry about struggling to pay your mortgage.
You’ll have a home you can’t wait to get back to every day.
If you’re thinking you don’t make enough money.. don’t worry. That might not have as much as an impact than you might expect.
Here are some ways to figure out how much you need to own a home:
Do Your Research
Get ready to do some research on your end. They call it due diligence in real estate. In reality, it means to study your butt off.
Doing the research yourself empowers you:
- You might see a property no one else saw yet.
- You’ll be in the best position to avoid fees.
- You’ll avoid valuing property wrong.
- You’ll avoid jumping on bad opportunities.
Don’t rely on an agent. Hired professionals aren’t your only option. Don’t feel like you need them. At the end of the day, their job is to make money off of you. You have the ability to find the homes and prices you like.
Start looking for a home that will get more money for you on the market than its cost today. This way you will end up making money off of your house is you ever decide to sell it.
It’s possible to reduce a home’s cost by 20 to 40 percent when you’ve learned what’s on the market. But you should still save as much money as you can!
Nothing offers a bargain better than understanding. The budget you have doesn’t matter. You can save more by doing short-term research instead.
Your Best Start To Own A Home
The place to start looking for a home is within a growing and active real estate market.
You have to save as much money as you can before you start thinking about buying. Saving more for a down payment gives you time to find the right house in the right conditions.
It is possible you will find yourself in a bidding war for a house you have your eyes on. In those cases, the person that makes the best offer often ends up with the house.
For Those Ready To Own A Home
If you’re ready today, you are starting to look during a good time to buy a home.
Try to find your house and make an offer as soon as you can. Don’t make any impulsive decisions, but homes can sell fast in a hot market.
The homes on the market today will produce more money for their future homeowners.
- Mortgage rates are falling.
- Quarterly home prices are falling.
- Interest rates are below four percent.
It’s time to buy and to buy now.
About Your Financing
Be sure to take the time to look at your options for financing. Consider avoiding traditional agreements that help the banks out more than they help you. There are more financing options available to you today. Look for the creative ways you can go about financing.
Here are the different types of loan options:
- USDA Loan
- VA Loans
- Conventional Loan
- FHA Loan
- HomeReady Mortgage
- Coventional Loan
- Piggyback Loan
Think of how you can avoid fees. Protect yourself from the trap of misleading or exaggerated rates. You don’t even have to put up 20 percent as down payment anymore. Do what works best for you and use the new financial structures we have today.
Negotiate Your Own Deals
It can be easy to follow the old trends of the negotiation process. Much of what’s tradition in real estate began with the bank. A bank who had the upper hand in designing most negotiation models.
Now, those negotiation models are different . You are now in the driver’s seat. Make sure you say exactly what you want in the deal and make it clear. Aiming for 10 percent, for example, as a down payment can ease the struggle of saving for a down payment.
This can free up your cash now, but it will be more money you are financing over time. For the most part, it is up for you to decide how much you want to put down, and how much you want to finance. Keep your insurance in mind. Low and upfront payments allows you to cancel mortgage insurance any time and at a later date.
Start Planning The Process Immediately
We already mentioned the importance of starting a savings for this venture. The banks would love to get 20 percent of it from you. But making that high of a down payment is risky these days.
So as you plan to own a home, consider what you can learn by your own research. You also need to think about how much money you want to finance. Consider putting less than 20 percent down to get your best financial start. You might only need 3%. It all depends on what you’re comfortable with.
Don’t rush yourself making decisions to own a home. Having a house is a lifetime commitment after all.