When the time comes for someone to consider buying a home of their own and achieving their part of the so-called American Dream and becoming a first-time homeowner, it is important to understand and appreciate some financing options early on. Since most people, especially when they don’t own a previous home, which provides significant funds when sold, need some type of additional sources, for the necessary financing. It is prudent, therefore, since, for the vast majority of people, their personal home represents their single largest financial asset, to discover and understand financing/financing options and decide on the best course of action. for your personal needs and situation. With that in mind, this article will briefly attempt to consider, examine, review and discuss 5 ways/options to finance your home purchase.

1. conventional: The most common method is to use the conventional approach. This means qualifying and using a mortgage for these needs. To be prepared, it is essential, at least six months, before beginning the search, to examine, review, correct, improve, and improve your credit report and score. These are usually available either through a bank, mortgage banker or broker, or some other lending institution.

2. Family friends: Some people find it more advantageous to go to their friends and/or relatives to obtain some type of loan, etc., to purchase their house! Obviously, only a few lucky people can take advantage of these types of sources, because most of us have neither the contacts, with these types of funds, nor any willingness to lend you money.

3. Owner – Financed: There are various occasions and scenarios in which a homeowner may be willing to assist or fully finance a purchase. Sometimes, it’s because the home may have been on the market for an extended period, while other times it’s because, holding the papers, may, in some way, benefit the current owner of the property. This approach can be either for primary or secondary funding sources!

4. Balloon Loans: It may be necessary or advantageous to use some type of global loan, instead of a conventional one. This type of financing is generally interest only (rates can vary), for a specified, rather short period, and after that period, you must pay off the principal, in full, or purchase new funds. / financing.

5. Combination: It’s not unusual for someone to use some combination of these approaches/methods. For example, someone who lacks sufficient funds for a down payment, but otherwise has excellent credit, may rely on owner financing to obtain some of the necessary funds and a conventional source for the first mortgage.

If owning a home is meaningful to you, discover your options and learn the best way to proceed for you. An educated buyer makes the best decisions!