SAVING MONEY FOR PAYING THE DOWN PAYMENT
OF YOUR HOME LOAN
Due to recession there are many
defaults by several people who have
taken credit. Because of this you now
have to pay a substantial amount of down
payment to get a home loan. So, before
you start looking out for homes you
should have accumulated enough money to
pay for the down payment.
The lenders are taking about 20% of the
price as down payment. This is because
it provides more security for the
lenders as the borrowers will not
default easily because they have
invested a huge amount on the loan. Some
of the ways to save money for this
purpose are given below.
Restrict Your Monthly Budget: This is an
efficient way of saving money and
cutting down those unnecessary costs. To
do this, you have to note down all your
purchases for one month. At the end of
the month make a detailed analysis as to
where you can save money and which of
those costs you can cut down. For
example if you are spending $4.5 per day
for a chewing gum then cutting it down
will save you $135 a month. If your
husband or family member also has the
same habit then you will be able to save
$270. With this example you should
realise that small changes will help you
save a lot of money.
Take the advice of an Expert: You can
also avail the expert services of your
realtor. He or she will provide you with
the various options that are available
to finance your home. Make sure that you
consult a credible Realtor. Realtors
work only on commission.
Tap into the Resources of your family:
Asking your family members to lend you
some money may not be the best way to
pay your down payment. However, for a
good purpose your family and friends
will be ready to help. There is a new
concept that is rapidly gaining fame
called “Peer to Peer financing”. Run a
search on Google to learn about it.
The Most Efficient method is to “Save”:
With proper determination and correct
methods that will suit you’re spending
and saving habits, you should be able to
save enough money to pay for your house.
It will definitely take a longer time
but the level of satisfaction is high.
Also, the amount of risk involve comes
down to 0 since you are buying a house
with your money.
Now is the best time to buy your dream
house since the realty market is at all
time lows throughout the world. But to
do this you need to have funds. The
prices of your home may increase and
decrease according to the business
cycles, but this should not affect you
because you will be living in that house
for some time.
Also, do not take any loans on your
house in the long term because it is the
place where you live and therefore,
should not be exposed to risk. Contact
one of our helpful account
representatives to assist you in the
high risk merchant account or
offshore merchant account for a
high risk merchant.