I came across a great article today for first-time homebuyers called “How to buy a home without cash from your parents” and wanted to share some of the great advice they gave.
Throughout my years in the real estate industry, I have come across many cases where first-time homebuyers have relied on parents and grandparents to help with a down payment and closing costs. In today’s economy, many families are finding it very difficult to make their mortgage payment and cannot even consider helping out their child/grandchild purchase their first home.
So what are the first-time homebuyers to do? Wait until the economy improves and everyone is back on their feet so they can go ask Mom and Dad? I don’t think so.
There’s a combination of ways to save and be able to get into your very first home. Take a look at these options below from Marcie Geffner of Bankrate.com.
Many first-time homebuyers traditionally have relied on parents and grandparents to
help with a down payment and closing costs. But today, many older people aren’t in a financial position to offer this assistance to younger family members.
How can would-be buyers afford their first house or condominium on their own? For
many buyers, the answer involves a combination of personal savings, a low-down-payment loan with mortgage insurance, seller-paid closing costs or a first-time homebuyer down-payment assistance program.
Down payment help
It’s okay if you aren’t in a position to save thousands of dollars for a down payment. There are many loan programs out there that allow a small down payment to make things less stressful.
Check into FHA loans and PMI. I can sit down with you and discuss the difference in this options and together we will find what type of loan best suits your situation.
First-time buyer tips
If you get help from family or don’t get help, your first step should always be to meet with a lender to find out exactly how much you can borrow. There’s no sense house-hunting only to find out you can’t afford the properties you were looking at. This way you know the figure you should be looking at and can plan and search accordingly.
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