The thousands of
dollars in rent you’ve already paid to your landlord may be a
you don’t even want to think about. Buying a house just isn’t
possible for you right
now. And it isn’t in your financial cards for the foreseeable future.
Or is it? The
situation is common and widespread: countless people feel trapped in
home rental, pouring
thousands of dollars into a place that will never be their own—yet
they think they’re
unable to produce a down payment for a home in order to escape this
rental cycle. However,
putting the buying process into motion isn’t nearly as impossible
as it may seem. $o
matter how dire you believe your financial situation to be, there are
facts that may be key to helping you step from a renter’s rut to homeowning
Initially, of course,
the most daunting factor involved in buying a house is the down
payment. You know you’ll
be able to handle the monthly payments—you’ve done this for
years as a renter. The
hurdle, instead, seems to be accumulating the capital needed to
put money down.
However, this hurdle may be smaller than you think. Take a look at the
following points and
explore whether any of these scenarios may be possible for you:
1. Find a lender to
assist you with your down payment and closing costs.
If you’re free of debt, and own
an asset outright, your lending institution may lend
you the money for a down payment
by securing it against your asset. In this case,
you won’t need to have
accumulated capital for a down payment.
2. Buy a home even if
your credit isn’t top-notch.
If you have saved more than the
minimum for a down payment, or can secure the
loan against other equity, many
lending institutions will still consider you for a
mortgage, despite a poor credit
3. Find a seller to
assist you in buying and financing the home.
Some sellers may be willing to
bear a second mortgage as a seller take-back. The
seller then assumes the role of
the lending institution, and you pay him/her the
monthly payments, rather than
paying the price of the home in a lump sum. This
is an additional option if you
have a poor credit rating.
4. Buy a home with much
less down than you’d think.
Investigate local and federal
programs, such as first-time buyer programs, that are
designed to help people like you
break into the housing market. An experienced
mortgage consultant will be
equipped to give you all the information you need
about these programs, and
counsel you on which options are best for you.
5. Create a cash down
payment without going into debt.
By borrowing money for specific
investments, you may be able to produce a large
income tax return that you can
use as a down payment. Technically, the money
borrowed for these investments
is considered a loan, but the monthly payments
can be low, and the money you
put into both the home and the investments will
ultimately be yours.
So, you know there are options
out there. The next step is to educate yourself on what
your own personal possibilities
might be, and how to follow through with the means to
achieve these goals. Keep in
mind, too, that you can get pre-approved for a mortgage
before you begin searching for a
home. In fact, you should get pre-approved—the
process is free and doesn’t
place you under any obligation. You can be pre-approved
over the phone. Or, take the
next step and complete a credit application. Once a credit
application is submitted, you’ll
receive a written pre-approval, which will guarantee you
a mortgage to a specified level.
When you have a concrete price range, you’ll know
where to begin looking. Make a
commitment to yourself to break out of the renting rut.
Start today! Paul Purewal - www.paulpurewal.com
I am the GUY that will make a difference!
I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.
Karen Guy, REALTOR®
Coldwell Banker Horizon Realty