While living happily in a particular home requires a lot more than just financial considerations, the reality is often that, unless / until you can have the economic / financial necessities, including the down payment and money, needed. for closing costs / expenses, you will not be able to meet these other requirements / needs! After, over a decade, as a licensed real estate seller in New York State, I have come to firmly believe that the more educated and prepared he is, the potential, skilled, home buyer, the better, his ability to make decisions. , and, oftentimes, her happiness, with the whole process! One of those items, which requires attention and preparation, is having the necessary funds for the necessary down payments and other related closing costs. With that in mind, this article will attempt, briefly, to examine, examine, review, and discuss 5 potential funding sources.
1. Friends and family: Your friends and family may be one of the biggest sources of funding! You are probably familiar with many homeowners, who have drawn a large portion of their necessary funds from either one or a combination of these sources! These are usually the people who care about us and our needs the most, if they can. are often willing to help their personal situation at best, allow!
2. 401 (K); trade unions; etc: Unlike the IRA, there are no tax penalties, when we borrow funds, from our 401 (K) plans, for the purpose of a down payment, on a house! Many unions, too, offer plans for their members to help with these kinds of contingencies. Some employers have specific programs designed to help inspire and motivate employees to stay loyal to their business. The key is to think outside the box!
3. Personal savings: Long-term financial planning, unfortunately, is rarely used! With the power of membership and the concept of Periodic – Payment – Investment, those who have the discipline, focus and commitment, as well as the ability, periodically, to set aside specific funds, for this purpose, have accumulated personal savings amount, which could make this deposit available!
4. Sell financial assets: Some use other financial assets like stocks, bonds and others to accumulate the necessary funds, in a prepared way!
5. Different percentages of down payments, required: Although, many believe that you have to have 20%, the reality is that there are many circumstances where a lesser amount is needed. In fact, on average, the down payment is around 13%. However, you have to realize that if you put less, it will result in a higher monthly payment. This can lead to other challenges, in terms of mortgage eligibility, as well as monthly financial strains!
Bottom line, be prepared! The more you know about your options, the better you can evaluate them and do what's best for you!