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How You Can Turn Your Rent Payments into Mortgage Payments to Own Your Home
Dated: December 22 2021
How You Can Turn Your Rent Payments into Mortgage Payment to Own Your Home
|Like most renters, you probably feel trapped within the walls of a house or apartment that just doesn’t feel like yours.|
It’s a dream most of us have: to own our own homes and stop paying rent. If you’re like most renters, you may feel trapped inside the walls of a house or apartment that really doesn’t feel like your own space. In your own home, you’d be able to make holes in the walls for picture hooks or paint them any colour you’d like. You feel like you’ll never find a way out of the rental and into a home of your own.
You Don’t Have To Continue Feeling Trapped.
No matter how long you’ve been renting, or how insurmountable your financial situation may seem, there are programs that can help you achieve your goals. With the information in this article, you’ll learn how you really can:
- Save for a down payment;
- Stop paying off you landlord’s mortgage; and
- Stop wasting your money on rent.
The problem for most renters isn’t the ability to make a monthly payment. You already are making monthly rent payments. The problem is putting together enough cash to make a down payment.
But saving for a down payment isn’t always as difficult as you might think. Consider the six important strategies described below.
(1) You could be able to buy a home with a much smaller down payment than you think.
There are a few local or federal government programs, such as first-time buyer programs, designed to help people become homeowners. And even if your spouse has owned a home before, you can still qualify if your name was not registered. Check with your real estate agent to be sure he or she is familiar with first-time buyer and similar programs and can offer this option to help you purchase a home.
(2) Your lender may be able to help with your down payment and closing costs.
Even if you don’t have the cash for a down payment, if you’re debt free and own an asset such as a car, free and clear, your lender may be able to lend you the down payment for a home by securing it against the asset.
(3) Some sellers will help you buy and finance your home.
Sellers are sometimes willing to hold a second mortgage for you as a seller take-back. In effect, the seller becomes your lending institution. Instead of paying the seller a lump sum amount for his or her home, you’ll pay monthly mortgage instalment payments to the seller.
(4) You may be able to come up with a cash down payment without going into debt.
Borrowing money for certain investments to a specified level may generate a significant tax refund for you that can be used as a down payment. While the money borrowed for these investments is technically a loan, the monthly payments can be small, and the money invested in both home and investment will be yours in the end.
(5) You can buy a home even if there are problems with your credit rating.
If you’re able to put together more than the minimum down payment, or if you can secure the loan with other equity, many lending institutions will consider you for a mortgage. Or a seller take-back mortgage could also help you if your credit rating is less than perfect.
(6) You should get pre-approved for a mortgage loan before you start house-hunting.
Pre-approval is easy, and gives you complete peace-of-mind when you shop for a home. A mortgage expert can obtain a written pre-approval at no cost or obligation, and it can be easily completed over-the-phone and submit required documents electronically.
More than a verbal approval from your lender, a written pre-approval is almost as good as money in the bank. It includes a completed credit application and a certificate which guarantees you a mortgage to the specified amount subject to the lender's approval of the property to be purchased when you find the home you’re looking for.
Deal with a professional who specializes in mortgages. Using the services of a professional can make the difference between obtaining a mortgage, and remaining stuck in the renter’s rut. There is rarely a cost or obligation to enquire.
Be aware of the many important issues that affect you as a renter. Take a few minutes to discuss your needs with an agent so that you can stop paying rent and spend your money on mortgage payments instead!
The conversation with your agent costs nothing, and you’re under no obligation to buy a home. Take the time to learn about your options and learn about how you can afford to buy a home, and you’ll be prepared and relaxed when you’re ready to buy. If you’d like additional information about buying a home, there are many more helpful articles available to you right here on our blog at absolutely no cost. Just scroll down and find another helpful read.
Please contact us here to schedule a free consultation if we can help you or your friends understand the options available for first-time buyers, or provide information about buying a home. We’ll chat with you for about 15 to 30 minutes and show you the latest home-buying technologies and strategies.
No high pressure; just plain, honest talk. Your consultation is completely free and does not obligate you in any way.
We look forward to hearing from you soon!
WHAT DO I DO? - I am passionate about helping my clients have a memorable experience when they buy and/or sell their homes. Moving to a new home is one of the most stressful experiences for most peopl....
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