What is Happening in the Mortgage Market

Many first-time home buyers are crunched for cash. A lot of first-time buyers shoot to purchase early in life, and borrow money from parents for a downpayment. But not everybody has the financial resources to buy at a young age. Realistically, the decision to buy and deciding when you can “afford” a home depends on you. If you think you might want to buy a home someday, then someday is always going to be a random day in the future – 10 years from now, your someday will still be off ahead of you. The only way you’ll get the money to buy a home is to commit to buying a home, and find ways to come up with the cash.  There are two types of loans that do not require a down payment, USDA or Rural Housing Development Loans and VA Loans.

Mortgage Payments are No More Expensive than Rent

In most regions, mortgage payments are no more expensive than rent. In fact, in many places, a mortgage can cost hundreds of dollars less than renting a comparable property. If your justification to continue to rent is that you can’t afford to buy, straight month-to-month costs would prove that argument invalid.  Use our rent versus buy calculator to see what works best for you.

Coming Up with Cash Requires Dedication

The real barrier of entry for most first-time homebuyers is the downpayment and monies required at closing. What many people don’t think about is that the money for that is never just going to “show up.” People always live up to the limit of their means, unless they make a structured plan and budget and force themselves to live below it.

The money to put a downpayment on a home is never going to come into your life like a windfall.  With the possible exception of a gift from a family member, in that case you might have a few options like an FHA mortgage. You must put together a plan to make it happen. Budget your dollars. Economize on dining and entertainment. Cut frivolous expenses. You’d be surprised by how much cash you can come up with just by saving.

Don’t forget to examine the other options, though. Consider borrowing against an insurance policy. Withdraw money from a 401k. Cash in savings bonds. Where there’s a will, there’s a way. Decide to buy a home, and then create a plan to make it happen; don’t just wait for “someday.”

Richard Woodward
Banker / Senior Branch Manager, NMLS ID 217454
Envoy Mortgage - When Trusted Advice Counts
Click here to view My Personal Brochure

Office: (972) 661-5136 Fax: (972) 314-9647

17440 Dallas Parkway Suite 118 Dallas, TX 75287

Visit Us Online - www.Envoy-Mtg.com

Texas Mortgage Banker Registration #45300 NMLS ID 6666