[vc_row][vc_column][vc_column_text] We remember the old days (yeah, a century ago, way back in the 1900’s) when there were no debit cards, and you either had a checkbook with a register or you had to actually go to the bank where your account was at if you wanted to get money out of your savings account. The digital age with access to checking and savings accounts at our fingertips and access to credit at the push of a “Submit” button is the norm. Quick access to your money is amazing, but it does one thing…it increases your spending. Spending is the opposite of saving. And with automatic withdrawals hitting your account often through the month, it is hard to track how much is going out unless you are on top of all your iTunes, Spotify Premium, Hulu, Netflix, and the list goes on. If you haven’t looked over our previous post “1st-Time Buyers – How Much Can You Afford?” you should check it out before you move on here. Savings is an unknown unless you know what you are targeting for a price.   Let’s get started here and boil down saving for your new place. [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_column_text]

Is 20% Down A Myth?

As we start to answer this question, you should check out this great video from Dave Ramsey to the right on thoughts regarding 20% downpayment for your first purchase. The quick answer is you will need as much as you can pull together. Typically you should for about 20% of the purchase price, but that’s not an easy thing to do for anybody these days. That’s a huge amount of cash to save even for a penny-pinching Mizar. If you can do this you will be able to put a potential lender ready to fund an 80% LTV which a lot of lenders would love to see.[/vc_column_text][/vc_column][vc_column width=”1/2″][vc_video link=”https://youtu.be/elhaa4nJs4E”][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_single_image image=”3813″ img_size=”full”][/vc_column][vc_column width=”1/2″][vc_column_text]

Just Like A Squirrel

You should try to get as much cash together before you make an offer to purchase any home, even if it’s not 20% of the purchase price. Remember the other way you can make the money you do have work for you (even if it’s way less than an ideal amount for that perfect property) is that you can make an offer to purchase a less expensive property that makes what you do have available to put down as a higher percentage of the offering price. (Listing price, Offer price, and Sales price are often three different numbers in most transactions) Just think like our fuzzy friends, and squirrel away pennies every chance you get. Become frugal and decide on cutting spending as much as you can while moving money toward that downpayment and moving costs.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_column_text]

Why not say “yes” to presents?

You can also include money from others in the form of gifts, or inheritances. And, it is not to be forgotten that there are 100% home loans available from a few lenders. For example, if you are a Veteran, you can get 100% funded as a “Thank You” from Uncle Sam. If getting into a home is your goal, you can always let your family know that you don’t want birthday or Christmas gifts, but instead, you would rather have them give the money to you for the house savings and dow-payment. It’s not wrong, to be honest, and getting your family on board will help you get that savings filled even faster.[/vc_column_text][/vc_column][vc_column width=”1/2″][vc_single_image image=”3814″ img_size=”full”][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_single_image image=”3816″ img_size=”full”][/vc_column][vc_column width=”1/2″][vc_column_text]

Don’t Worry

Don’t forget that if you have any savings to put to the purchase (any amount at all), you may get a better interest rate or other benefits over the life of the loan. The only way to really know how much cash you need is to call a few lenders and open up the conversation to see what money and loan products are out there, and how much cash you need in order to purchase that first property. Don’t worry about the money. Really…Don’t Worry About The Money!! You can get a loan to purchase your first home with a lot of knowledge about your personal financial picture, and by making a plan. Having a home buying plan doesn’t come together quickly or without a hard look at how you spend your money every day. It is a difficult thing to look at your situation and find out that you can’t buy the home you dream of. But that doesn’t mean you will not e able to buy your first place. Once you are in a home, the monthly payment will be going toward your next home purchase as you pay down the loan and the home potentially increases in value. (sometime hoomes loose value…that’s just the risk everybody take when they buy a home).[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_column_text]

The plan can come together

Just remember not having all of the money today doesn’t mean you will never be able to buy a home. Purchasing and owning a home takes a plan. Every person can make a plan toward home ownership at any age. It is best to start young, but your financial situation is your personal situation. You can control that. We are here to be your best advisor on that plan. Just call us at (503) 799-8354 or michaelj@myreateam.com to start the conversation. We have advisors that you can speak to so you can build your own team that will help you begin to write your home ownership story. We know that having a team helping you will make all the difference in the end, and it will make you more knowledgeable about your personal finances, and what home you will purchase and love.[/vc_column_text][/vc_column][vc_column width=”1/2″][vc_single_image image=”3817″ img_size=”full”][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_single_image image=”3690″ img_size=”full”][/vc_column][vc_column width=”1/2″][vc_column_text]My Real Estate Advisor Team is licensed to practice real estate as a broker in the state of Oregon and is not a licensed appraiser, mortgage broker/lender, or licensed financial advisor. Any financial advice received from the My Real Estate Advisor Team is for information only. My Real Estate Advisor Team makes no legal or promissory statements to the actual financial market at the time of this post. You should always contact a licensed financial advisor or lending professional to seek actual financial advice for your specific situation.         [/vc_column_text][/vc_column][/vc_row]