Tired of paying rent for an apartment or house that doesn’t feel like home? Dreaming of your own place but short money for the down payment?
You’re not alone. For many renters, buying that first home seems like an impossible task. They feel trapped in the renting cycle.
Fortunately, you can break free. Armed with professional information, you can make owning your own home a reality.
Buying your first home is a huge hurdle, especially coming up with the down payment. This report features professional tips and facts to help you in the process. Learn about new financing options. Look at your assets in a new way. This information may solve your financing dilemma.
Explore low down payment options
You know you can make the monthly payments (you already do that), but where will you get the down payment for your home? How can you possibly save enough money when you’re pouring your money into rent each month?
Fortunately, you may not need as much as you think. There are many low-down payment, even zero-down, programs available. Ask your real estate agent for information and get referrals to lending institutions. Call all the banks and mortgage companies listed in your phone book’s yellow pages and ask about options.
Research home loans on the Internet. You may be surprised at what you find.
There are also local and federal government programs designed to help renters become homeowners. Again, ask your real estate about these programs. A little homework may make the difference in financing your first home.
Work with the sellers
Ask the sellers if they’re willing to act as your lender and carry the loan. Sometimes, if you commit to pay more than the asking price – or pay a higher interest rate – sellers carrying the loan won’t require a down payment. Use the assets you already have.
If you don’t have debt and own an asset (like a car or boat) free and clear, you may be in better shape than you thought. Ask your lending institution if they’ll lend you the down payment using your asset as collateral. While this option may come with a high interest rate, it might work for you.
Ask Friends or Family Members for Help
Most lending institutions allow borrowers to use gifts for their down payment. Perhaps a friends or family member is in the financial position to help you purchase your first home. It’s worth considering.
Keep Saving
While you explore your options, continue to save on a regular basis, even if it’s only $25 a month. Not only will this will take you closer to your goal, it will show lending institutions you have a record of responsible saving.
Showing posts with label Mortgage Shopping. Show all posts
Showing posts with label Mortgage Shopping. Show all posts
Tuesday, January 18, 2011
Monday, January 3, 2011
Survey: Consumers Comparison Shop for Everything Except Their Mortgage
RISMEDIA, December 15, 2010—Consumers today are expert comparison shoppers, always on the hunt for the best deal, but when it comes to their mortgage, borrowers often lock in their first home loan offer.
According to a new LendingTree survey of 1,317 homeowners conducted online by Harris Interactive in September, 96 percent of American consumers compare prices when shopping for anything, but nearly 40 percent obtain just one home loan quote. By comparison, when shopping for a home computer, consumers research an average of 3.1 models before making a purchase. This explains why fewer than 3 in 10 (28 percent) borrowers are very confident they received the best possible deal on their current mortgage.
Based on a nationally representative sample of current homeowners who were involved in shopping for their home loan, the study revealed 85 percent of consumers use the web to comparison shop, yet just more than 1 in 5 (21 percent) shopped online first for mortgage rates. Additionally, although nearly 40 percent obtain just one home loan quote, more than 9 in 10 borrowers (91 percent) understand interest rates vary between lenders.
Frustration also appears to be at the root of this shopping dilemma. According to the survey, 70 percent of borrowers find shopping for a mortgage frustrating, citing the complexity of the terms (21 percent) and time-intensiveness nature of the process (20 percent).
The survey also reveals:
• Though it is a decision that will affect them for the next 15-30 years, nearly three-quarters (72 percent) of homeowners spent the equivalent of a full working day or less shopping for their home loan. Even more shocking? One in 10 spent the amount of time it takes to brush their teeth.
• Twenty-three percent of homeowners recognize they could save more than $100 a month by reducing their mortgage rate by one percent.
• Women are more than twice as likely as men to say they were not at all involved with shopping for their mortgage or when refinancing (16 percent versus seven percent, respectively).
According to a new LendingTree survey of 1,317 homeowners conducted online by Harris Interactive in September, 96 percent of American consumers compare prices when shopping for anything, but nearly 40 percent obtain just one home loan quote. By comparison, when shopping for a home computer, consumers research an average of 3.1 models before making a purchase. This explains why fewer than 3 in 10 (28 percent) borrowers are very confident they received the best possible deal on their current mortgage.
Based on a nationally representative sample of current homeowners who were involved in shopping for their home loan, the study revealed 85 percent of consumers use the web to comparison shop, yet just more than 1 in 5 (21 percent) shopped online first for mortgage rates. Additionally, although nearly 40 percent obtain just one home loan quote, more than 9 in 10 borrowers (91 percent) understand interest rates vary between lenders.
Frustration also appears to be at the root of this shopping dilemma. According to the survey, 70 percent of borrowers find shopping for a mortgage frustrating, citing the complexity of the terms (21 percent) and time-intensiveness nature of the process (20 percent).
The survey also reveals:
• Though it is a decision that will affect them for the next 15-30 years, nearly three-quarters (72 percent) of homeowners spent the equivalent of a full working day or less shopping for their home loan. Even more shocking? One in 10 spent the amount of time it takes to brush their teeth.
• Twenty-three percent of homeowners recognize they could save more than $100 a month by reducing their mortgage rate by one percent.
• Women are more than twice as likely as men to say they were not at all involved with shopping for their mortgage or when refinancing (16 percent versus seven percent, respectively).
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