Take a look at this article that will help you start saving for your new home!
Article courtesy of Raleigh Realty Homes, click the link at the bottom to see and read the full article!
Let’s start with some great news: You DON’T need 20% down to buy a house. In our market, and in a lot of other places, you can buy a home with 0% down
A great way to build wealth over a period of time is through the building of home equity. Obviously, this means that one of the main requirements needed to build this home equity is to actually own a home. Many aspiring home buyers typically run into the problem of acquiring the funds needed to make their first down payment on a new home. Not a problem. This article lists the many steps a person can take to save up the money needed to do just that.
More than likely, one of the biggest single purchases an individual will make during their lifetime will be purchasing a home. When dealing with the prospects of buying real estate, understanding the full ins and outs of the process should be of the utmost importance. Being aware of the total cost of everything, along with what you can afford, will put you in a great position. This will enable you to properly prepare for your future purchase.
At the time of closing the deal on your new home, there will be a one-time payment made in cash referred to as a “down payment”. Being as though your mortgage payments each month, as well as the initial value of your home equity, is determined by your down payment, it’s crucial to understand the long-term financial effect it can have on you and your budget.
Buying a home is not for everyone. In my local market, Raleigh, North Carolina, you really shouldn’t be afraid to pull the trigger on a house. If it’s anywhere near a decent deal it’s going to be a good investment. A lot of people want to buy a home and will never execute because they’re afraid to pull the trigger or making a mistake. It’s a lot harder to make a mistake in a strong market like we have in Raleigh.
You should think about your timeline when trying to decide if renting or buying is the best option for you. One well-known concept and rule to live by is that in order to reconcile all transaction fees and closing costs associated with purchasing a home is that you must own it for about 5 to 7 years. It should go without saying that since prices and costs vary from one location to the next, the time exact time frame will depend on the area you choose to reside in. In order to assist with figuring out the costs between renting and buying, numerous online calculators have been created that can be used completely free. You should take advantage of these to gain great insights that can be beneficial in helping you decide on the best course of action.
One little-known fact is that the actual seller can decide to pay for the closing costs. How much they actually pay can vary, but it isn’t uncommon to find sellers who actually pay the entire closing cost, or at the very least, a portion of it. This will help you, as the buyer, recover any costs you had to pay in a shorter time span.
It’s important to keep this one fact in mind: The bigger the amount of your down payment, the more money you’ll likely save long-term. To save up for that bigger down payment the smart way, follow the tips that follow.
1. Decide on a Goal
2. Figure Out Your Timeframe
3. Allow Room in Your Budget
4. Create an Automatic Savings Plan
5. Save All of That Extra Cash
6. Make Sure Your Savings Plan Is Flexible
7. Determine What You’ll Be Able to Afford
8. Using Your IRA to Purchase Your First Home
9. Building Wealth Through Building Equity