The thousands of dollars in rent you’ve already paid to your landlord may be a staggering figure—one you don’t even want to think about.  Buying a house just isn’t possible for you right now.  And it isn’t in your financial cards for the foreseeable future.  Or is it?  The situation is common and widespread:  countless people feel trapped in home rental, pouring thousands of dollars into a place that will never be their own—yet they think they’re unable to produce a down payment for a home in order to escape this rental cycle.  However, putting the buying process into motion isn’t nearly as impossible as it may seem.  No matter how dire you believe your financial situation to be, there are several little-known facts that may be key to helping you step from a renter’s rut to home-owning paradise!

Initially, of course, the most daunting factor involved in buying a house is the down payment.  You know you’ll be able to handle the monthly payments—you’ve done this for years as a renter.  The hurdle, instead, seems to be accumulating the capital needed to put money down.  However, this hurdle may be smaller than you think.  Take a look at the following points and explore whether any of these scenarios may be possible for you:

1. Find a lender to assist you with your down payment and closing costs.

If you’re free of debt, and own an asset outright, your lending institution may lend you the money for a down payment by securing it against your asset.  In this case, you won’t need to have accumulated capital for a down payment.

2. Buy a home even if your credit isn’t top-notch.

If you have saved more than the minimum for a down payment, or can secure the loan against other equity, many lending institutions will still consider you for a mortgage, despite a poor credit rating.

3. Find a seller to assist you in buying and financing the home.

Some sellers may be willing to bear a second mortgage as a seller take-back.  The seller then assumes the role of the lending institution, and you pay him/her the monthly payments, rather than paying the price of the home in a lump sum.  This is an additional option if you have a poor credit rating. 

4. Buy a home with much less down than you’d think.

Investigate local and federal programs, such as first-time buyer programs, that are designed to help people like you break into the housing market.  An experienced REALTOR® will be equipped to give you all the information you need about these programs, and counsel you on which options are best for you.

5. Create a cash down payment without going into debt.

By borrowing money for specific investments, you may be able to produce a large income tax return that you can use as a down payment.  Technically, the money borrowed for these investments is considered a loan, but the monthly payments can be low, and the money you put into both the home and the investments will ultimately be yours.

So, you know there are options out there.  The next step is to educate yourself on what your own personal possibilities might be, and how to follow through with the means to achieve these goals.  Keep in mind, too, that you can get pre-approved for a mortgage before you begin searching for a home.  In fact, you should get pre-approved—the process is free and doesn’t place you under any obligation.  You can be pre-approved over the phone.  Or, take the next step and complete a credit application.  Once a credit application is submitted, you’ll receive a written pre-approval, which will guarantee you a mortgage to a specified level.  When you have a concrete price range, you’ll know where to begin looking.  Make a commitment to yourself to break out of the renting rut.  Start today!

Selling your home is a complex process that can be stressful and time-consuming.  An experienced REALTOR® has the knowledge, skills, and connections to help you through the process every step of the way.  Consider the following benefits of working with a Realtor:

Professional Experience:

With knowledge and training in marketing strategy, negotiation tactics, and the workings of the current real estate market, a Realtor will be able to guide you through the steps of the home-selling process and be able to explain exactly what to expect. They will make you aware of your rights and responsibilities, work with you to strategize the best moves according to your own goals, discuss financing options, and point you in the direction of other specialized professionals who will aid you in different stages of the process.

Best Price:

Realtors have their fingers on the pulse of the current real estate market, and will know what comparable properties in your area are selling for.  They have the resources and knowledge to establish the best asking price and to attract the highest selling price.  With access to their company’s professional marketing resources and connections, they will ensure potential buyers are immediately made aware of your home and market the property to sell as quickly as possible and for the most money.

“Showcasing” Experience:

Your Realtor will know the importance of a property’s first impression.  They will have experienced first-hand, for example, the impact a property’s “drive-up appeal” has on the rest of a potential Buyer’s experience of your home.  Your Realtor will be able to offer you tips and information on how to get your home in the best selling shape possible, in order to sell your property quickly and for top dollar.

Access to Qualified Buyers:

Realtors save time and effort by dealing only with qualified buyers.  They have access to a pool of pre-screened and pre-qualified buyers who are serious about buying a home in your neighbourhood.  Realtors work hard to develop this base of qualified buyers which will become an invaluable resource for you.

Negotiation Skills:

Realtors serve many functions, but perhaps the most important is their role as primary negotiator on your behalf.  Your Realtor realizes your goal is to sell your home as quickly as possible, and for the most money possible, and will work closely with you during the negotiation process to facilitate this goal.  Realtors bring to the process the knowledge and skills to draw up legally binding contracts, to assist in negotiating offers and counter-offers, and to offer counsel and perspective as you work toward your selling goals.