There are many different loan incentives for homebuyers so it's best to get pre-approved for a loan before asking a loan officer about the kinds of incentives the homeowner can get and how much down payment is needed. This is especially true if you are serious about purchasing a home and want to get in on the deals.
What are some of things you can ask for when you are in the market to purchase a home? Listed below are some ideas that can help you save money or get more for the money you put down.
Down Payment, Price Reductions and Cash Back
The money you put down can bring down your over all price; however, you will have to ask for this incentive. For instance, a down payment of 10 percent or more can have a reduction of about six percent of the home's price. Anything less than 10 percent and you can get a three percent cut off the price.
You can also get a "cash back" incentive that can help to cover the closing cost including mortgage fees that you pay just once. You can also retrieve the money to do home improvements if the home is in dire need for it. Be sure to ask questions to learn more about this option.
Paying With Cash Adds Extra Incentives To Your Cause
Are you paying with cash to purchase a home? If so, then you have more power to bring to the table than you realize. For instance, sellers within the buyer's market don't want to deal with loan or credit issues and are willing to work with someone who has upfront cash.
One thing they may consider, if you are purchasing with straight cash, is lowering the price a tad so that you get a good deal while the sellers doesn't have to go through the trouble of loan officials.
When you decide to take advantage of incentives, you want to be sure you don't get swindle out of them by loan officers inflating your loan. Many will do this especially if you are a first-time homebuyer who knows little about the market. If the realtor you are working with is experienced, they can help you to stay protected from sleazy loan officers.
Avoiding Contingencies
When you are purchasing a home, you don't want to tack on numerous contingencies. These can include purchasing a home only after you have sold your home. When you want incentives, this is something you want to avoid.
When you tack on so many contingencies, you're giving the seller less optimism that you will buy and thus financial incentives are withdrawn from the table.
Be sure to add the contingency that the home must be appraised at and/or above the purchase price or getting a loan could be rather tough.
