If you’ve been renting for some time, you may think you’ll never be able to qualify to check out Tustin real estate and homes for sale to buy one. However, before you give up your dream of home ownership, make sure you analyze your rent payments versus the mortgage loan after taking into consideration all tax deductions. If, after researching both choices, you feel a home loan is out of your budget, don’t just give up. There are several other innovative options to overcome a formidable monthly mortgage payment.
If you set things up right, you could make up for most of your monthly loan payment and a large portion of the utilities. When you factor in the tax savings and increased net worth, you have the potential to net a respectable profit. Plus after you pay off the mortgage, you own and asset without any liens and encumbrances. Many renters, single or married, have benefited from home ownership after taking the necessary steps to enter the real estate market. Here are some other alternatives to check out:
1) Add an income producing guest quarters to your home.
2) Lower your monthly payments by taking advantage of an adjustable rate mortgage. However with the current disaster in the mortgage industry, it’s wise to seek the counsel of the reputable loan agent or real estate attorney before committing yourself to this type of loan.
3) Cut your monthly loan commitment by applying for a graduated payment mortgage.
4) Apply for a loan with a balloon payment to slash your monthly loan costs.
5) Ask your local Tustin Realtors or real estate agents about the option of purchasing income producing property such as a duplex, triplex, or other similar property to help lower your monthly mortgage costs.
6) Inquire with a local mortgage agent to see if a mortgage credit certificate program (MCC) exists in your area. Under this program, the government offers you mortgage aid up to $2000 each year.
7) Add a part time job to bring additional income to supplement your payments.
Ask your boss for a raise or housing aid.
9) Consider co-ownership with another friend or family member.
10) Consider the option of buying down the interest rate.
11) Consider taking over a low interest FAA or VA loan.
12) Take over a low-equity rate buy down.
Most of the time, the above strategies help lower your monthly payments or increase your available cash. However if you really want to leverage your ability to buy a better home, trying to prioritize and budget your income and expenses.
A great technique to help you evaluate where you spend the majority of your money is to list every monthly expense on a sheet of paper. While many renters dream of owning a home, they allocate most of their cash towards a new vehicle, expensive stereo’s, eating out, and other similar cost that won’t appreciate in value. If you’re willing to discipline yourself to stay on a feasible budget, you’ll make significant progress towards home ownership.
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