If you are currently renting a home you already know what it is like to have monthly house and utility payments. You probably also know that you would much rather have that money go towards your own home rather then paying someone elses mortgage payment every month. The problem with most renters isn’t that they can’t make the payments on a home. The problem is that many just can’t seem to save up enough money for a down payment on their own home.

The truth is you can actually buy a home with a lot less money then you may think. 

 Here are a handful of solutions to show you how you could own your own home with out any major up front expenses out of pocket.

• There are currently many government programs available that will assist with down payment and/or closing cost moneys. If you are a first time home buyer then there are many targeted specifically for you. When chossing a good Realtor this is something you should ask about. You can also talk to your local lender to find out what programs they may have for both first and non-first time buyers.
• If you do not have enough cash for a down-payment, but you own an asset free and clear (such as a car), your lending institution may be able to lend you the down-payment for your home by securing it against this asset. Talk to your lender for more info.
• Many sellers are getting very creative in selling their homes. If you find the right seller they may be willing to assist you with money for the down payment and/or closing costs. A good Realtor should be able to help you with this type of transaction.

Now lets say you do have money for the costs of buying a home, but maybe your credit is not so good. You may still be able to buy a home with bad credit. In some cases if you can come up with more than the needed down payment money banks will still consider lending you money for a home. So you can still buy a home with bad credit. Talk to you lender for more information on what they can do for you.

One final tip to help you get started.

Get preapproved for a home loan before you start looking for a home. Preapproval is easy and free and can be done in a day or two over the phone. And with a written preapproval you have more bargaining power when dealing with sellers. If they know you have been approved already they will be more willing to negotiate because they know you are actually able to make the purchase. It will also give you peace of mind knowing how much you can afford and that you will not have problems getting the money after finding your dream home.

If you have any questions or comments on this article feel free to post in our comments section or call Ryan Horne, Realtor, at 302-381-8438.

Thank you and God bless!!

This entry was posted on Wednesday, June 25th, 2008 @ 12:41 pm on the category Buyer Tips. You can follow any responses to this entry through the RSS 2.0 You can leave a response, or trackback from your own site.