Five Ways to Come up With a Down Payment for a New Home
With interest rates still hovering near all time lows, now may be a great time to buy a new home. As interest rates dip, homes that were once out of your price range may now be affordable. That is, of course, if you can come up with a suitable down payment. When the housing market crashed several years ago, many lenders tightened up their requirements for credit scores and down payments. Previously, many buyers were able to purchase homes with very little money down. While some lenders still offer mortgages that require less than 20 percent down, many lenders still stick to the 20 percent minimum. If you are anxious to call for San Antonio movers to come and move you to your next dream home, here are five ways you may be able to come up with an adequate down payment.
1- Draw money from savings
Obviously, the first place to look for money for a down payment is with your cash reserves. If you have money set aside for a rainy day, now might be a time to pull some money out. If your financial goals set your moving date back a little while, automatic deposits into a savings account designated for saving for a down payment can help you stock up the money you need with very little work on your part.
2- Sell assets
If a new home is more important to you than the new car in your driveway, your boat, or other valuables, selling them off may help you come up with sufficient cash. While you may have to drive an older model car for a few years, having a beautiful, new home to come home to every night may be worth it.
3- Sell stock options
Many employers now offer stock options as part of an employee’s total compensation. If you have stock options that you could sell, talk to your human resource department to discuss options and regulations.
4- Gifts from family, friends, or employers
If you have friends or family members who are financially able and would like to help you come up with the money for a down payment, you can also use a financial gift towards your down payment for certain types of mortgages. Your lender will most likely require that you obtain a gift letter, however, which verifies that the money does not have to be repaid.
5- Negotiate with the seller
When you purchase a home you are also often required to pay closing costs of approximately $5,000 to $8,000 upon closing. This is above and beyond the 20 percent you need to come up with for your down payment. Free up all of your cash for the down payment by negotiating with the seller to pay all or some of the closing costs on the purchase of their home. Sellers that are anxious to sell are often happy to help if it means getting their house sold.
Additional options are also available for pulling together enough money for a down payment on a home. Talk to your lender for more suggestions and ideas. Once you have secured a sufficient down payment, you can get excited about searching for the right house, calling your San Antonio movers, and finally realizing your dream of home ownership.