CENTURY 21 Classic Gold



Posted by CENTURY 21 Classic Gold on 7/6/2018

If you’re trying to get ready to buy a home, one of the biggest tasks that you’ll need to take on is that of saving for a down payment. The down payment will need to be a significant amount of money. If you put it in the right place, it will have the ability to gain some interest. Most importantly, you don’t want to have access to the money so that you can spend it freely. 


What’s Your Time Frame?


When you start saving money, you’ll need to know what your time frame is to better discern one of the best places to keep your down payment money. You can put your money in a CD or money market account, but the money will need to stay put for anywhere between 1-2 years. In the case of down payment money, the amount of interest that you gain isn’t as important as having access to the money when you need it. 


Research Your Options


Do your research in order to find the best deals. You may be able to gain a bit of interest  on a 3-month CD if you’re short on time. If you have a bit more room for growth and will continue to compound the money, search online for higher yield savings accounts that will allow you to continue contributing money over time. You can even consider putting portions of your money in different places with different time frames and interest rates. This way, some of your money will have a chance to grow, yet you’ll still have access to it. 


Know The Home Buying Process


When you get pre-approved for a loan, the mortgage company will go through your entire financial history past and present. You’ll need to show all of your bank accounts and their balances along with pay stubs. The mortgage company will also delve into your debt and calculate what is called your debt-to-income ratio. Before you even get to the stage of pre-approval, you’ll want to make sure all of your significant debt is paid off. 


Once you get to the closing table to buy your dream home, your check for all of the closing costs including the down payment will need to be present. This is why you need to make sure that your money isn’t tied up when you reach the point of purchasing a home. Generally, a bank check will need to be issued for the entire cost of closing less the deposits that you have already made on the home.                          


Make a plan for your saving the down payment and you’ll be well on your way to securing your dream home!





Posted by CENTURY 21 Classic Gold on 3/25/2016

If you are looking to buy a home you may be wondering how you will be able to come up with the down payment. One way that many buyers come up with down payment money is from gifts.  If you are planning on using gift money to help buy a home there are some guidelines you will need to follow. Here are some simple rules: 1. Get a Gift Letter If you are getting gift money to help you buy a house you will need a gift letter. The letter has a few requirements:

  • Have the letter hand-signed by you and the gift-giver
  • State the relationship between the buyer and the gift-giver.
  • State the amount of the gift.
  • State the address of the home being purchased.
  • A statement that the money is a gift and not a loan that must be paid back.
  • A statement that says: “Will wire the gift directly to escrow at time of closing.”
2. Document a paper trail Mortgage underwriters want proof of where the money came from and where it went. Get copies of transactions showing the withdrawals and deposits. You will also need to make sure that the transaction is for the exact amount of the gift. Following these simple guidelines will get you to the closing table hassle free.    







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