NINE WAYS TO PULL TOGETHER THE DOWN PAYMENT FOR A HOME

NINE WAYS TO PULL TOGETHER THE DOWN PAYMENT FOR A HOME - WORTH THE READ IF YOU'RE SERIOUS ABOUT PURCHASING A HOME!

1. Set up a dedicated account - Get going by setting up a savings account that pays the most interest possible. If you’ll be tempted to divert the money to other needs, set up an account solely for the down payment. 

2. Set up automatic savings - Saving is painless and virtually unnoticeable when you set up an automatic withdrawal with your bank that pulls money monthly, twice monthly, or weekly from your checking account.

3. Dedicate windfalls to your goal - Pledge to put every tax refund, gift of cash, purchase refund, and work bonus into your down payment account.

4. Save your raise - When you earn a raise at work, carry on as if it never happened. Have the difference between your old and new paychecks funneled automatically into your down payment savings.

5. Sell your "stuff" - Sell things that you are not using or that piled up in your garage/attic/closets etc. You would be surprised how much getting rid of these items can not only help your cause, but rid your current place of clutter. Who wants to move it any way?

6. Sell your car/boat/motorcycle - Pump up your savings fast by disposing of assets that have real value, such as a car, boat, motorcycle, or expensive sports equipment. Do without or replace the car with a cheap car. Having real estate is more important than having wheel estate.

7. Sell taxable investments - Do you plan to sell investments to raise money for your down payment? If so, sell stocks, bonds, mutual funds, and other investments in taxable accounts instead of touching money held in tax-deferred retirement accounts such as IRAs and 401(k)s. Selling investments in tax-deferred accounts carries stiff penalties if you sell before retirement age. Definitely talk to an expert before you make moves like these.

8. Get help from family/down payment assistance - Rules differ by lenders on whether and how much help with your down payment you can get from gifts. One example: The Federal Housing Administration (FHA) lets borrowers apply gifts from immediate family members toward a down payment. You’ll be required to produce a “gift letter” from the giver, verifying that the money is not actually a loan. You’ll probably also need to show copies of checks or wire transfers so your lender can verify the origin of the gift. PRMG offers multiple down payment assistance programs for our borrowers.

9. Ask your employer - Some employers — including companies, colleges, universities, and state or local governments — have programs to help employees with down payments. Ask the human resources department where you work about possibilities. When negotiating for a job, you may be able to ask your new employer to include down payment assistance as part of your compensation package — as a signing bonus or relocation assistance. PRMG has an Affinity Program that will work with your HR department in putting together a program that helps benefit you as well as fellow employees obtain their dream of owning a home. We also have real estate companies who partner in this program and can help as well.

In short, when you are looking to buy a home, there are many avenues to help reach your goal of homeownership. Why pay someone else's mortgage, when you can gain equity in your own investment?