True Values for BuyersWith all of the tips and tricks when it comes being a First Time buyer, the "down payment" tips seem to be missing from the World Wide Web.

Here are several things that you can use to your advantage when wanting to gather the "downpayment" for your home purchase.

First - First Time Buyers have to come in with the same down-payment amounts as everyone else.  (there are some "snake oil" sales people that would have you think differently)

The prevalent types of loans that are available in the world are:

  • Conventional - Usually needing a 20% down payment.
  • FHA - 3.5% down payment.
  • VA - Some associated costs - but the least money required in the form of a down-payment.
As you can imagine, there are not a lot of folks in the world that have the ability to come in with a "conventional" down payment about.  Especially amongst the first time buyers.
Most of those looking to purchase real estate for the first time are FHA or VA borrowers.
We have seen Down Payments enter the picture in the following ways when it comes to the First time Buyers:
  • Gifts - These work well and usually come from the first time buyers family to give them their start in life.
  • Credit Cards - We have seen this type of "down-payment" gathering - but not very often - with interest rates quite high in the realm of Credit Card Companies - it is not the best choice.
  • Saving - With preparing for home purchase - most people can sock away a bit of savings each month.  If the "down-payment" amounts don't change( increase ), this will serve you will after several months - you will have the amount needed.
  • Tax Returns - this one is key, sock it away as if you were not expecting it and after a couple of years - you will be good to go.
When you are gathering your down payment - there will also be the issue of closing costs.  Closing costs are the "extra" costs associated with your buying a home.  Closing Costs are usually the following as applied to a buyer:
  • Escrow - The Buyers part of Escrow (usually 1% of the purchase price)
  • Title Insurance - The Buyers part of Title Insurance (usually 1% of the purchase price)
  • Lenders Fee - (seller does not have this cost associated with their sale as part of their closing costs) - However, you as a buyer are not paying a real estate agent's commission either.  The Real Estate commission for the Sellers Agent and the Buyers Agent (those representing you) are always picked up by the Seller.
We have been very successful at getting the sellers to pay the buyers closing costs.  Therefore, all you need to worry about or be concerned about is your Down-Payment - Let us know if we can help you.
You will also want to partake in our Santa Clarita Crash Course for Real Estate!  Take buying a home, as a first time or veteran, seriously.  "You are not buying a pair of shoes..." -Paris...