Down Payment Options For First Time Home Buyers

by Leon on October 24, 2013

tips for finding money for a down payment on a homeSo, you are looking for a savvy way to put a down payment on a new home – where do you look first? Purchasing a home for the first time can be a big deal – a really big deal. Not only will this be the biggest purchase of your life, but it will also be the biggest decision of your life. If you have just gotten married, or you are thinking about starting a family, purchasing a home can be a great way to get some roots in the ground and start thinking about the future. When it comes to real estate, purchasing a home is a great place to put your money. However, if you don’ have the money for a down payment, there are a number of different options. Here are some down payment options for first-time home buyers.

One great place to start is with relatives. Chances are that if you just got married, your new extended family would be glad to chip in on a down payment for a new home. In fact, instead of setting up a wedding registry, you could set up a down payment fund that friends and family members can put money into. When it comes to getting the financing you need to purchase your new home, this can be a great way to get the starter home of your dreams.

Another place to look for loans is with tax refunds. If you work a steady job and have a decent annual salary, you could stand to make a pretty hefty tax refund at the end of the fiscal year. In fact, if your spouse makes the same amount of money, your combined tax refunds could be big enough to set yourselves up with a pretty handsome mortgage and your first home. Just make sure, though, that the down payment is big enough to make the monthly mortgage payments manageable.

Also, a little known source for down payment help could be with your employer. Many employers have loan assistance programs that allow new home buyers and workers to put down money on their first home. So, you may want to ask the human resources department at your job to see what kind of assistance they have to offer. Of course, not all businesses offer this help, but some major corporations with international locations do. Also, you maybe want to do some research about this because you actually ask – just so that you seem knowledge about the available programs.

Lastly, you could take out a first time homebuyer’s loan. This is a loan given out by banks to people who are looking to move into their starter home, but that don’t have the money in the bank to make a sizable down payment. So, when you go to your financial institution to get pre-approved for a mortgage loan, you may also want to ask them about taking out a first time homebuyer’s loan. Be mindful, though, of the interest rates – you don’t want to be financially bound to something that could drain you of your savings or cause financial distress. Also, you want to get a free house valuation before you make an offer on a home – and just so that you know what kind of money you will be spending. In most cases, a starter home will be modestly priced, but certainly not cheap.

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