How to Buy a Home Now - 09/28/09


For Immediate Release
8:00A.M. PT, September 28th, 2009
Fredrick Bond, SVP/Mortgage Division Manager
805.369.5138
fbond@heritageoaksbank.com

(San Luis Obispo, CA) - Today many households are discovering creative ways to make a home purchase possible. One strategy is to consider sharing your home in order to reduce your payments.

Often families have a member who is struggling to get by on their own, and wouldn’t mind living with people they know. Your parents or children may appreciate the benefits of having a room at a discount to what they’ve been paying for a place to live.

Both parties gain by combining households and saving on total shelter costs. Even if you need to add on to your house to make the situation work, it can be a smart solution.

BIGGER SAVINGS

Look into buying a fixer-upper home, and letting your skills increase the property’s value and usefulness. Almost anyone with the interest and time can complete many improvement projects on their own.

Another way to find an affordable home is to purchase a smaller or older house. Remember that you can always upgrade your home in the future.

Taking a hard look at our expenses also usually reveals places where we can cut back without depriving ourselves of anything essential. Write down where every dollar goes, and then think about regular expenses which you could reduce or eliminate.

HELP CHILDREN BUY

Parents can assist their children in buying a house by co-signing their mortgage. Doing so makes a loan application stronger, since the parents’ credit is backing up the transaction.

You can co-sign a loan even if your offspring are claiming the $8,000 first-time buyer tax credit. Anyone who hasn’t owned their primary home over the last three years can take advantage of this special federal tax break, which is scheduled to lapse at the end of November.

But it’s important to think through your situation before co-signing a loan. If your children don’t make their payments for any reason, you’ll be asked by the lender to take care of them.

Matters would be complicated if your offspring were laid off, or experienced an untimely death or divorce. Planning for these possibilities will help ensure that co-signing is a positive experience for everyone involved.

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