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So, you’ve decided to take the plunge and aim to buy a house. What now? Although you may feel overwhelmed at the thought of putting together the money for a down payment, with some discipline and creative strategies, it might be easier than you think to come up with that vital cash. Check your current finances by checking out the some ways to save and raise extra funds. For instance, you could: • Write down your monthly income, monthly savings and monthly spending. If you have a lot of high-interest credit debt try to move your balances to cheaper cards and plan to spend a year paying off as much of that debt as possible. • Identify your long-term financial goals. Owning a house may be one, saving enough for retirement may be another. • Make a home-buying savings plan. Open a savings account just for this purpose and make regular deposits, even if you put aside just $20 a week it can add up. • Look for other sources of down payments funds, such as your Individual Retirement Account (IRA). First-time buyers now have access to $10,000 of these funds penalty-free under certain conditions. • Cut back on non-essential spending. Your friends and relatives will understand that you can’t spend $40 to go to dinner and the movies if you say you’re saving to buy a house. Your children will understand, too. In fact, saving to buy a house can be a family activity. • Make saving for a house fun! Chart your progress on paper and post it somewhere to remind yourself of your goal! Raising the Cash Think that you still won’t be able to raise the kind of money your need for a down payment? In addition to the well-known idea of asking relatives for a loan, here are twelve creative ideas for raising home cash. 1. Sell (or borrow against) other real estate you own. 2. Sell securities you own, or borrow against them through a loan from the stock brokerage. 3. Cash in (or borrow against) the built-up value of any life insurance you have. 4. Withdraw money from your IRA. New tax laws make this a more attractive option, especially if you’re a first-time buyer or haven’t owned a home in the last three years. 5. Borrow against retirement funds. In some cases, the rate on the loan may be as low as 2%. 6. Ask for help from your church, synagogue, or other non-profit organization. Fannie Mae has a “3/2” loan program that allows you to make a 3% down payment if a bonafide non-profit puts down the other 2%. 7. Sell a boat, RV, or second car you own and use the cash for the down payment. 8. Look for an investment partner who’ll put up some or all of the cash in an equity-sharing partnership. You make the monthly payments and the two of you split the eventual resale profits. 9. Change the withholding taxes, if permitted, on your salary in anticipation of higher deductions when you get a mortgage. Your take home pay will increase, giving you more funds to put toward a down payment. 10. Use a lease option that lets you rent the house now and buy it after you save. 11. Look for a home with an assumable loan. Instead of buying out the owner’s equity, ask the seller to carry back and second mortgage for an equal amount. This way you can buy the home without a down payment. 12. Offer something other than cash (a car, boat, or collectibles) to the seller in lieu of the cash down payment. 13. Contact banks, mortgage lenders, your city’s housing department or HUD (Department of Housing and Urban Development) to see if they have properties they own as a result of a foreclosure available for sale to an owner/occupant. Some lenders and government agencies will let you buy a foreclosure with no down payment if your credit is good and they’re anxious to have the home occupied, or if you have skills (carpentry, landscaping, or even painting) that you can use to increase the home’s value. When you are ready to purchase contact your friends at BEST TITLE COMPANY to act as you closing agent: 1-800-940-3400 Visit our other Web Sites :
http://www.HollywoodApts.com - Lomar Apartments - Apartment Rentals in Hollywood http://www.GottliebLaw.com - Gottlieb & Gottlieb - Law Offices and Title Company |
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