Stop Paying Rent And Own Your Own home... why? look here

By
Real Estate Agent with Amanda Realty Group (Alexander Realty)

Stop Paying Rent and

Own Your Own Home!

People who rent a home or an apartment often feel trapped. They feel they can never save enough money to come up with a decent down payment on the home of their dreams. It's hard enough when you can't even paint a room or hang a picture without worrying about what the landlord will say. It's even worse when you think of all the money that you are wasting on rent, thousands of dollars that disappear every year without anything to show for it.

Most renters don't realize, however, that it is easier to buy that first home than they think. It's not that they can't come up with a monthly house payment, since they are already giving their landlord a rent check every month. It's coming up with down payment that worries them. Coming up with this lump sum, however, is easier than they think.

What you don't know will hurt you...

1. Find a program that requires you to come up with a much smaller down payment.

There are many "first buyer" programs offered by both the federal and local governments that help people qualify for getting into their first homes. If you're married, you can even qualify for some of these programs if one of you has already owned a home in the past, as long as both names weren't listed. Find a real estate agent who is knowledgeable about these programs, and have them assist you in finding the right type of home loan for you.

2. Ask your lender to help with you with the down payment and closing costs.

If you can't quite meet the requirements for a down payment, ask your lending institution for additional help. If you are relatively free of debt, and you own an asset outright, such as an automobile, you can use it as collateral to help you secure the loan.

3. Try to find a seller who will help you get into your new home.

You may be able to find a seller who is willing to hold a second mortgage for you so that you can get enough money to qualify for the loan. This is called a "seller take-back," which means the seller is actually acting as your lender. You will then be able to pay the seller back in monthly installments.

4. Create a cash down payment with out having to go into debt.

You may qualify for a tax refund that will help you make the down payment if you borrow enough money for your new home. The amount that you have to pay back each month on such a loan is relatively small, and will be considered as part of your investment in your new home, so you will benefit in the long run.

5. Don't let a low credit rating stop you from buying your first home.

Many lending institutions will still approve you if you have problems with your credit, as long as you can meet their requirements for a down payment. You can also use a "seller take-back" type of loan to assist you in getting around a low credit rating.

6. Get pre approved for a home loan before you start looking for your new home.

Knowing in advance that you are ready financially will help you relax and find the right home. Many lenders and home mortgage experts can get you pre approved without cost or obligation, and quite a few can do it right over the phone. Getting a pre approval in writing entails a complete credit application, and a specific certificate that guarantees your ability to obtain a home loan for a specified amount, so you won't have to worry about whether or not your home loan will go through smoothly.

Ask your real estate agent to help you find mortgage professionals that specialize in qualifying first-time homeowners. By spending a little time and having all of your questions and concerns addressed, you will realize how easy it is to stop throwing thousands of dollars away on rent, and to finally realize your dream of being a homeowner!

This is not intended to solicit property currently listed for sale

Posted by

Amanda Alejandro

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Nina Rogoff 12/14/2010 09:52 AM
Tags:
realtors
new homes
financing
renting
first time buyer
single family
no
realestate agents
residential homes for sale

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Rainmaker
706,816
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

The buyer has an advantage in today's market it is cheaper for them to purchase a home than rent. Great tips for them to utilize when looking to purchase a home.

Dec 14, 2010 09:29 AM #1
Rainer
355,890
Nina Rogoff
RE/MAX Executive Realty - Medfield, MA
Sells Real Estate!

Another well thought out post, Amanda. I'm going to re-blog it. This information can help get a group of people into the market at a time when it's great to buy, but many are hesitating. Well done!

Dec 14, 2010 09:38 AM #2
Rainer
39,273
Jessica Leimback
Agave Homes & Investments - Mesa, AZ
Broker,SFR,CNE,CSSPE

There is still the appreciation argument. It really helps own the whole rent vs own argument. Without it the debate becomes a little more even.

Dec 14, 2010 09:39 AM #3
Rainer
334,235
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

very good and informative post. i hope this gets buyers off the fence and into that dream home. or at least a starter home. how can u go wrong with rates so low.

Mar 16, 2011 03:18 AM #4
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Rainer
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Amanda Alejandro

President Amanda Alejandro Realty Group
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