Although, happily living, in a particular house, requires far more than, simply, financial considerations, the reality, often, is, unless/ until, you can have the economic/ financing necessities, including the down – payment, and monies, needed for closing costs/ expenses, you won’t be able, to address these other requirements/ needs! After, over a decade, as a Real Estate Licensed Salesperson, in the State of New York, I have come to strongly believe, the more educated, and prepared, the possible, qualified, home buyer, the better, his decision – making ability, and, often, his happiness, with the overall course of action! One of these items, requiring attention, and preparation, is having the needed funds, for the necessary, down – payment, and other, related, closing costs. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 possible funding supplies.
1. Friends and family: Perhaps, one of the single – biggest, supplies for this funding, is your friends, and family! You probably know many homeowners, who derived much of their needed funds, from either one, or a combination of these supplies! These are, generally, the people, who care most about us, and our needs, so, if they can. are often, willing to help, as best, their personal circumstance, permit!
2. 401(K); unions; etc: Unlike IRA’s, 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 labor unions, also, offer, plans, for their members, to help with these types of eventualities. Some employers have specific programs, designed to help, in order to inspire and motivate, employees, to keep loyal to their company. The meaningful, is, to think, outside – the – box!
3. Personal savings: Long – term, financial planning, unfortunately, is rarely employed! With the strength of compounding, and the concept, of, regular – Payment – Investing, those who have the discipline, focus, and commitment, in addition as ability, to regularly, put aside specific funds, for this purpose, have accumulated the amount of personal savings, which might, make having this down – payment, obtainable!
4. Sell financial assets: Some use other financial assets, such as stocks, bonds, and others, to build up the necessary funding, in a prepared way!
5. Differing percentage of down – payments, needed: Although, many believe, one must have 20%, to put down, the reality, is, there are many circumstances, when a lesser amount is needed. In fact, on average, the down – payment, is about 13%. However, one must realize, if you put less down, it will translate, to a higher monthly payment. This may cause other challenges, in terms of qualifying for a mortgage, in addition as monthly financial stresses!
The bottom line, is, be prepared! The more you know your options, the better you can estimate them, and do, what’s best, for you!