We witnessed how the pandemic impacted all spheres of life. Practically overnight, every citizen and business faced a new and unpredictable challenge. However, for some people, COVID-19 is the time for big life decisions, and buying a house can be one of them. Even though the economic situation is uncertain right now, investing in a new property can be more affordable than it used to be.
By now, you have already assessed your financial health, made a budget, and researched your financing options to buy a house. You are committed to building your credit score, you pay bills on time and you have a salary or other source of income that will allow you to make a home purchase. However, for many people and especially first-time home owners, the customary 20% down payment is difficult to afford. Luckily, different solutions can help you finance this obligation, which makes the entire process much easier for you. Did you know that a 20% down payment is not a legal mandate? Rather, it is a matter of business custom and tradition. So there is a high degree of flexibility regarding this type of payment. It can be reduced to 10% or even 0%, so remember to negotiate the cost of the deposit as well.
Research your financing options
Once you have a broad concept of your financial situation, make sure you can actually afford your dream home. To avoid disappointment, it is important to be realistic during this phase. You could be eligible for specific deductions and incentives on a federal, state, or local level. A no money down mortgage can come with the strings attached. So, it is important to ask any questions that may be relevant and that could impact your buying decision. After all, it is your future and your money involved, and you have not just the right – but also an obligation, to be well-informed.
A house down payment can be financed by different means, such as home buyer grants and down payment assistance programs. Still, if you do not feel comfortable using those benefits, keep looking for the ones that will allow you to buy the house under your preferred conditions.
An agent can help you
Real estate agents are qualified experts who can assist you in the process of buying a house. Even if you have already found a house you would like to purchase, their job is also to make sure all the documentation is in order, to protect you and the seller as well. The purchase of the house is a highly personalized and tailored process, so your agent will assess your needs but also your general financial position, solvency, and liquidity. The agent can give you financial advice as well, help you pick a bank, and explore which financing options are available to you. It is worth mentioning that your agent will make the process less stressful for you, because they will deal with layers of bureaucracy and government regulations on your behalf.
For all the reasons stated above, it is important to find an agent you can trust. Check the agent’s portfolio, consider the recommendations of friends and family, and carefully read your contract. Agents can have different specializations, for example just for a specific local area or type of property. Agent’s compensation is generally based on the commission from the sale, so think about the agent as your potential employee. Ask around, and find the agent you feel comfortable cooperating with. You will work as a team, and a trustworthy agent will certainly make your experience more pleasant.
Consider the specialized agencies
The real estate market is very diverse, and we can confidently say that it has something for everyone. It is even possible to buy a house by the hybrid model of rent to own. For example, ZeroDown understands the needs of the modern generation and allows you a “trial period” of living in a house and simply paying the rent until you are ready to buy it. You can decide if the ownership is the right option for you and if the house you picked suits the needs of your family. The fees specific which helps you plan your budget. With programs like ZeroDown, you are not obligated to buy the house if you change your mind.
Buying a house is an important milestone in the life of every person. We wish you a pleasant journey through the real estate market. And once you settle down in your dream house, you will forget all the hurdles.
For more tips on home buying, check out these posts.
Tips for Buying a Home in a Seller’s Market
When Buying a New Home, What are your Property non-negotiables?
