Buying a home requires more than just funds from your home loan. Here are some tips that will help you cover other costs.
Yes, now is the perfect time to buy a home! Of course, a home purchase comes with costs you may incur above the price of the home. Insurance, escrow and title fees, are just a few of the “closing costs” as part of the purchase process.
Then of course, is your down payment. Whether you’re going with a traditional fixed-rate mortgage with 20 percent down, or taking advantage of a loan with a lower down payment (Some loans are available with as little as 3 percent down), you still need to come up with that cash. So where does that cash come from? Here are a few suggestions.
Save it up!
Yes, here’s doing it the old fashioned, but tried and true way. When it comes to buying a home, it’s best to make your financial plan that gives you enough time to make sure your money is in order. This includes debt management and budgeting, so that you have the best opportunity to qualify for a low interest rate. While you’re making this plan, include a way to save some of that cash and put it away for your home purchase costs.
401(K) and IRA
Under certain conditions, you may be able to access retirement funds for a home purchase with minimal tax liability. Now, PRIOR to doing this, you want to discuss those liabilities with a tax professional.
Are you a veteran of the armed services?
Did you know that qualified veterans can obtain a mortgage loan that will allow you to get into a home with no money down and no closing costs? Contact us to find out more about VA loans.
Ask the seller to cover your closing costs.
This one is not always the most popular with sellers (For obvious reasons), but there may be situations where, instead of making an offer at a lower price for a home, to ask the seller to cover part, or all, of your closing costs. Of course, this depends on some factors including how long the home has been on the market, as well as the seller’s motivation, but it might not hurt to ask.
We are here to make your home purchase stress free!
We are Team Avalos Real Estate at Keller Williams VIP Properties, and we are here to help you realize all of your real estate goals. Contact us today for a no obligation consultation.
Team Avalos Real Estate
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355
Office: (661) 290-3743
Carlos direct: (818) 399-4093
Rose direct: (818) 590-2077