You don’t need to wait forever to own one of those homes for sale here in Rockport, Texas. But, you do need to come up with a down payment if you are going to use a mortgage to finance the purchase. If you are smart enough, you can come up with all the amount you need, and quickly.
Here are four tips to help you out.
Cut your expenditure like crazy
Take a second look at your expenses and find what you can eliminate or reduce. If you spend a fortune on three vacations every year, how about skipping them and putting that money in a special savings account towards your down payment? Avoid impulse buying too.
You’ll be surprised how much money you can raise within a year.
Borrow from your retirement plan
A lot of profit-sharing plans let employees borrow against their savings. Talk to the human resources department about making penalty-free withdrawals from your current plan to raise money for your down payment. It’s a smart way to come up with a deposit within an incredibly short time.
Sell your investments
If you currently have investments, consider selling some of them. You aren’t losing anything. On the contrary, you are simply transferring your current investments into another, very significant investment – your home.
Keep in mind that every payment you make on your mortgage accrues equity in your home. Plus, your home will increase in value through the years.
Ask the seller to help out
Depending on how motivated the seller is, they may be willing to make a deal with you to help out with the purchase price of the house. Try to negotiate with them to take out a second mortgage to cover some of the price. Just be sure to have a reputable attorney review all details of the deal.
The down payment is an important part of the mortgage application process. By being smart, you can raise it quickly and achieve your dreams of owning a home in no time.