A 20% down payment is a significant chunk of change. But with enough time to prepare and a little bit of creative budgeting, you’ll be able to save up for your new home sooner than you think. Follow these helpful budgeting tips to get started!
Break Down Your Budget
While it’s never a bad idea to start saving for a down payment, it’s an even better idea to analyze your budget before you consider a home purchase. This will help you set realistic expectations and concrete goals.
First, make a list of all of your necessary monthly expenditures — rent, power, water, phone service, student loans, etc. Add these expenditures up and subtract them from your monthly take-home pay. Then, look at everything that is left over and consider what to cut back.
After you’ve taken a look at your spending, determine what home price range (and, consequently, a 20% down payment) you could comfortably afford based on your current monthly budget. Our handy mortgage payment calculator might help! Continue reading
First-time home buyers who work with us often have the same question: Should we or shouldn’t we get a first-time home buyer loan?
In fact, there are a number of advantages and disadvantages attached to this type of loan.
So today, we thought we would take a few moments to share with you what you can expect from getting this type of loan as a first-time home buyer. That way, when it comes time for your to decide how you’re going to finance your first home, you’ll have all of the information you need right at your fingertips.
First-Time Home Buyer Loans 101
A first time home buyer loan offers financial assistance to qualified buyers by utilizing a variety of methods:
- Very low down payments or none at all
- Subsidized interest costs
- Forgive loans
- Defer payments
Generally speaking, the best candidates for this type of loan are home buyers who have never owned a home, although those who have not owned a home in more than three years may also qualify.
A key factor in the housing market recovery is returning to the national market en masse, much to the elation of housing market analysts.
According to a recent Bloomberg article, more and more first-time home buyers are entering the market because they feel more confident about the economic recovery.
Faster economic growth and a labor market that’s approaching “full employment” (according to the Federal Reserve) are aiding in that rise in confidence among first-time home buyers.
Even if you’re not a first-time home buyer, this news is sure to benefit anyone who is navigating the national housing market right now.
Fannie Mae Economist Makes Positive Predictions for 2015
Douglas Duncan, a chief economist at Fannie Mae in Washington, made the following predictions about the year ahead:
- There will be a 6.3 percent increase in mortgage lending for purchases this year.
- This increase follows a 9.6 percent decrease in 2014.
- Increasing confidence in the job market is the strongest indication that home sales will improve.