Most families in the United States want to have their own house. This is the result of the study, conducted by the National Association of Realtors. According to NAR chief economist Lawrence Yun, “Affordability conditions remain favorable in much of the country, but consumers need access to safe and sound financing, particularly the 30-year, fixed-rate mortgage and with low down payment options for first-time buyers.”
Looking for an affordable house for sale can be achieved through the help of real estate agents like the Great Florida Homes Team, however, the main player to close the deal is still “YOU”, your financial capacity and your ability to get a home loan is another part of the story. For first time home buyers, the first question they want an answer is “Where to get the money especially the money needed upfront for a down payment”?
A good start, would be 20% of your income. By doing so over the next 12 to 16 months could enough to get you a home with a more comfortable monthly investment.If your annual gross income is $96,000 you could have a savings of $19,200 over a year. If you are planning long term you can reduce your down payment to 10% so can work on other household expenses and debts, because your total debt is a factor in your qualifying.
Your 401 (k) account is another potential source of your down payment if you’re serious about buying a house for sale. This account offers assistance for first-time buyers. One good way to save more cash using your 401 (k) is to match the percentage of your monthly contribution from your employer, when applicable.
The IRA is also another option to earn money, because this account grows with the market. In cases where saving money becomes difficult, experts recommend electronic funds transfers from your paycheck to funnel into these sources.
When you are diligently saving that portion of your income getting that dream home is within your reach. Your monthly mortgage payment will vary depending on the down payment you make.