Three Ways to Improve Your Home-Buying Power
CONSIDER USING A DOWN PAYMENT ASSISTANCE PROGRAM.
Many states and non-profit groups offer down payment assistance to first-time homebuyers in today's market. The great thing about these programs is that the funds can also be used to pay closing costs and to buy down your interest rate, which could lower your monthly payment. Contact me for details about which down payment assistance programs may be available for your specific situation.
CONSIDER USING GIFT FUNDS.
Gifts from friends and relatives can often be used for a down payment. Gift funds could be very useful if you find yourself in a bidding war where you’ve maxed out your mortgage options and the only other option is to come to closing with more cash.
CONSIDER YOUR OVERALL FINANCING STRATEGY.
For example, what would it look like if you used some of your gift funds or down payment funds to pay off other debts instead of using those funds for a down payment? This may lower your overall monthly payments and open the door to getting you qualified for a larger mortgage so you can win your bid and comfortably afford your mortgage payment. Also, some home loan programs have built-in affordability mechanisms, such as loans with very small down payment requirements and renovation loans that are based on the improved value of the home.
One of the best ways to improve your home buying power is to pick the right mortgage professional who is experienced in helping buyers like you in a market like this. Contact me so we can get started!
Source: Momentifi