San Diego Real Estate – One of the most expensive real estate
San Diego Real Estate is one of the most expensive real estate in the country, and with tightened lending standards you have to you a good down payment to purchase your piece of San Diego Real Estate. Gone are the days of zero-down payment programs, below are some ideas on how to come up with a down payment,
Ways to save or Get Money for Your Down payment to Purchase Your Share of San Diego Real Estate -To save for your share of San Diego Real Estate there are all kinds of ways, you can start by simply setting up an automatic saving plan offered by most banks in which they transfer a predetermined amount of money decided by you, usually once a month, to your savings account. Other ways include: gift from relatives or friends, selling an asset (e.g. car, boat, collectibles), liquidating stock, mutual funds, saving bonds, or any investments you may have, taking a loan from your 401k, or reallocating money from tax refunds.
There are also various down payment assistance programs that aim to help buyers who are first time buyers. Among the most popular of these programs is the Federal Housing Administration (FHA) program. With an FHA loan you can give as little as 3.5% of the purchase price when buying San Diego Real Estate as a first time buyer, meeting all the FHA requirements.
If plan on buying San Diego real estate be prepared to put down a hefty down payment, banks want to know you are a committed borrower and also, reduce their risk against default. By asking borrowers to put at least 20% of the value of the home being purchased as down payment banks and buyers get some benefits. First if buyers purchasing San Diego Real Estate have more money to put down, chances of being qualified for a loan increases, additionally with a larger down payment a buyer’s monthly payment decreases. Not to mention that you, as a buyer, are likely to get lower interest rates, and pay less for mortgage insurance (or altogether avoid mortgage insurance), and shop amongst a larger variety of lenders, loan originators, loan products and programs.
Additionally, you’ll be interested in knowing that a buyer’s down payment to purchase a share of San Diego Real Estate also becomes instant equity when the real estate transaction closes, and the purchase is completed. You can tap into your instant equity by a line of credit or borrow against it with a home-equity loan.
Paul Easton is writer who is writing on San Diego real estate and giving us idea of most expensive place in San Diego. To know more – http://bay-realty.com/
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