Down Payment for a Home
How can I get money for a down payment?
Different Ways to get down payment for a home
Safe Money for a down payment for a home
This is really the biggest and best way to get money for your down payment for a Home. There are several different ways of starting to safe money. It all depends of course on your time frame. Take a look at your entire financial pictures. What monthly payments can you eliminate. Some younger buyers will move in with family to eliminate rent payment and save money that way. Review all your discretionary expenses. Do you really want to spend the amount of money on eating out, coffee, gym, vacations or anything that you can eliminate from your spending. I am not saying you have to give up everything, just find out what works for you to give up and start saving that money. I had a client that gave up smoking and saved down payment by putting the money she normally used to purchase cigarettes into her down payment savings account. If you have any credit card dept look at the cards with the highest rates and see what you can pay down or off. In most cases lenders and credit repair companies will advise you to pay down or off but don’t close these cards.
Borrow Money from your Retirement Account
To purchase a home you can borrow money from your retirement account. You should check with your employer or with the company administrating your retirement account on the exact terms, but generally you are allowed to borrow against your 401 k or any other account. You can also tap your IRA. There are different rules in the one you are borrowing in the other you are allowed to withdraw a certain amount. Best to checking with the investment adviser.
Get a Gift from Family or Friends
With most loan programs your family or friends can give you gifts toward the purchase of a home. I have seen many wedding registries that instead of asking for gifts are asking for a monetary contribution towards the purchase of their home. This can generally be anyone in your family or friends. With some loans they donor will have to prove where the funds are coming from. Check with your lender on the best way of receiving gift funds from family or friends.
Ask for A Raise
You can try asking your boss for a raise. I normally wouldn’t count too much on this solution but definitely worth a try. When asking for a raise be sure to ask for it on merit not because you need money for a down payment for a home. Do your home work, present your employer with your most recent accomplishments.
Get a second Job
Don’t jeopardize your main job, but if your time permits seek out second job to make additional money to safe for down payment for a home.
Sell items you no longer need
If you look around your home, all of us have items we no longer need. Do a yard sale, auction off some items online and see where you can get the most money for you unwanted items. Also, if you own more than one car you can sell that for additional funds for your down payment for a home
Claudia S. Nelson 571-446-0002
The Home Buying Process
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