For most first-time buyers, a 20 percent down payment is daunting. A home worth $400,000 translates to an $80,000 down payment. For example, those searching Rancho Mirage real estate properties for a three bedroom home could be looking at much more than that. However, keep in mind that the advantage of making a sizeable down payment is that you’ll have instant equity in your home.
For first-time buyers, there are several things you can do to increase the resources available to you. Many short sale realtors work with buyers who borrow against their 401k investment funds to help finance a new home purchase. In addition, some IRA accounts offer a provision for withdrawals for buyers purchasing their first home. Check with your bank or money manager to find out if either of these options might work for you.
If you are currently saving money for that down payment on your dream home, make sure that you’re getting the most bang for your buck. This means putting your money in a high-yield account, such as a money market account. You can also invest your savings into a certificate of deposit (CD), though it may offer less flexibility and liquidity. Look for a high APY and do what you think will be reasonable for your lifestyle in terms of saving and not being able to access those funds without penalty.
Whether you’re searching for Indio real estate properties, another area in the Palm Springs Valley or an entirely different region, it’s important to educate yourself on the best ways to invest your money and how to get the best price on your dream house. Good luck on this life-changing step!
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