Increase Your Down Payment for a Home in Carlsbad with These 20 Tips
Getting your dream single story home for sale in Carlsbad CA could be easier if you have enough down payment readily available. However, it’s not that easy to come up with 20% or even 5% of the selling price of a home.
One of the advantages of putting a bigger down payment is having a greater chance at getting a home loan and better terms. Lenders offer better interest rates and incentives to home buyers who are able to pay a bigger down payment.
Another advantage of a higher down payment is lower monthly mortgage payments, especially if you can put down 20% of the home’s selling price.
It could be hard to imagine where you can get enough cash for a 20% down payment for a single story Carlsbad CA home, but there are actually more sources you could get cash from than just your own bank account.
Here are a few tips how you can increase your down payment:
1. Ask for a gift from any family member. Most lenders accept gift letters for your down payment.
2. Ask for part of your inheritance early.
3. Ask help from a family member. Many lenders accept family loans.
4. Ask help from someone outside your family like an employer, friend, Non Profit Group or Government.
5. Borrow from your insurance policy.
6. Borrow from your stock account.
7. Borrow from your retirement account. Your home is a great retirement asset. Why not own one as soon as you can.
8. Borrow from your credit cards. Take note that it must be seasoned in your account for 3+ months. Most lenders do not approve of unseasoned money unless your down payment is over 20%. Always check with your lender to see if there is seasoning required and/or how it will affect your pre-approval.
9. Get one or more unsecured loans from your bank or credit union.
10. Find a partner to buy with you: friend, relative or investor.
11. Find a co-signer. You and cosigner must both qualify.
12. Finance or refinance another asset you have: House, lot, boat, car, jewelry, etc. You may be able to use that asset as collateral.
13. Sell an asset: Anything of value! Many people are getting great prices on Internet auction sites.
14. Trade something of value with the seller. One of your assets or your skills. (What do you do for a vocation or hobby that may be of value to the seller)
15. Get a second job. There can be significant tax benefits to an “in home” business, even if you live in a rental.
16. Ask the seller to pay for your down payment, closing costs or even pay off your debts. The presentation of this type of request is critical. You must show why it is in the seller’s best interest to do so.
17. Increase the price so the seller feels comfortable paying your costs or debts.
18. Ask the seller to carry some or all of the financing.
19. Spend Less! Do you really need a cup of Starbucks 1-2 times a day when regular coffee will work. Slim down those TV & Cell Phone packages for awhile.
20. Get a free financial review including Auto, Life & Health Insurance. Call Katherine Zacharias with Five Rings Financial at 619-208-7717. It might save you $100’s.
It’s all about determining what is REALLY important. What are you willing to do to own a home and reap the tax, lifestyle, appreciation & equity benefits you will get.
For even more helpful tips for buying or selling a Carlsbad CA home for sale, visit http://SanDiegoHomes4u.com.