You have an excellent credit score and a good job but not enough in the bank for a down payment. Sure, you can ask your parents for money or start saving money. But if you’d rather purchase property now, while interest rates are still very low, here are other options.
Talk to the sellers
You can ask the sellers to pay for the closing costs on your mortgage loan. If the property has been sitting on the market for a long time, or the sellers are otherwise motivated to get the deal done, they can agree to such “seller concessions.” There are limits, which depend on what type of mortgage product you’re using. Your lender can walk you through the options. This reduction in your upfront loan costs can go toward your down payment.
Give yourself a gift
Getting married? Skip the traditional wedding registry and ask for contributions toward your down payment. Having a birthday? Tell your friends and family to give you the money they’d usually spend on a fancy dinner and other gifts for your new property.
Liquidate your possessions
That’s a fancy way of saying “sell your stuff.” It’s unlikely you’ll clear $5,000 from a yard sale, but ridding yourself of higher-dollar items might make a dent in your shortage. Do you have two cars? Consider selling one for the short-term. It’s much easier to pick up another vehicle without much of a down payment than it is to find the money for your property purchase. Or if you’re moving a great distance, sell the big-screen TV instead of transporting.
These are only a few ways to boost the money you can put down for a property. Before you follow any strategy to help with your down payment, talk to your mortgage lender. There are government products and down payment assistance programs that may apply in your situation.