A home is probably the most expensive thing you will ever buy, but it’s also the most lucrative investment you will ever make. Saving for that very important purchase is crucial, especially when it comes to the down payment. As Dean Graziosi points out, making a sizable down payment is now required by many lenders. So how can this help you as a buyer?
Making a down payment will, as pointed out above, decrease the amount you will be required to pay each month. This will be the case throughout the duration of your entire mortgage. Just think of how much money you could save over the next 15 to 30 years just by putting back some money now. According to an article posted on MSN, “You may want to take more drastic measures to save a down payment quickly.”
Decreasing your monthly mortgage payments will also help you out in hard times. Should you ever suffer a job loss or fall into extreme financial difficulties, you’ll greatly appreciate that lower monthly house payment. It may even mean the difference between keeping and losing a home should the situation ever become dire.
Though down payments were not always required, they have always been preferred and recommended by many people in the industry. Now that it has become more difficult to obtain a mortgage loan, you’ll need to begin preparing for that down payment you will need to make. Dean graziosi offers some great tips on how to do this.
Saving money is the key. You can begin by cutting out all the unnecessary expenses that often find their way into everyday life. It’s amazing how many things you can actually do without when pressed to think about it. Also pay off all debts you can. This will help improve your overall credit score which will help you be approved for more money, and in turn, more house.
While it feels great to qualify for a larger house, be realistic about what you’ll be able to afford. Spending less on a house will mean a lower down payment. To put it into perspective, consider what a ten percent down payment would be on a home that costs $150,000 as opposed to one with a price of $300,000. This would mean the difference between $1,500 and $3,000, so you would be paying half as much for a down payment on the first as you would for one on the second. Even if you can afford the $300,000 home, you may come out better in the end to only choose the property that will cost you $150,000. You could also go for something that falls somewhere in between. Planning for the future and not maxing yourself out on mortgage payments is a good idea all around.
In the end, the down payment matters. It shows lenders you are not only willing to put up the money, but that you are also good for it. They will be more willing to provide you with the loan you are seeking if they know you’ll be able to pay it all off. You can read more tips and information on this topic by visiting Dean Graziosi’s site.