Debt Management Guidance for People Looking to Buy a Home

Professional Help
Public and private entities provide various counseling courses to help homebuyers make responsible decisions as they fulfill the American dream. Check your state government website for what programs are available locally. For instance, first-time homebuyer down payment assistance helps you find grants and cash to put down when your money is tied up elsewhere. Debt counselors can focus you on how to build credit and create a debt reduction plan.Real estate agents are not financial advisors, but experienced realtors help purchasers in various circumstances and can direct you to resources for research. We can also helps you find the best home within budget.

Additional Income Sources
Look for ways you can increase your income to add to what you can invest in your property while cutting debt expenses. Family members can work overtime or take advantage of incentives and bonuses. Look for passive income streams and side hustles that generate an extra few hundred dollars each month.

Considerations for Small Business Owners
If you’re a business owner, you typically need to have operated your company for at least two years. Mortgage lenders often review that much history of tax returns for financial verification. With the increase in small businesses, some companies are more lenient and allow owners with less than two years to qualify if they’ve started a firm in an industry where they already have experience. You’ll likely be asked to provide solid financial projections and demonstrate consistent income. When your company is formed as an LLC, you gain limited financial liability benefits and deal with less paperwork than a corporation. Be sure to file following Georgia’s LLC rules to be compliant in the state.

Cost-Saving Ideas
Negotiate on expenses like closing costs. You have more room to bargain for homes that have spent weeks on the market, especially if the owners are motivated to sell so they can close on another property. Winter months typically tend to be slower than summer, so if you can time your purchase for colder weather, you may be able to get a better deal. Use the same bargaining techniques to consolidate debt with lenders and request better terms.

With a 20% down payment, you avoid private mortgage insurance (PMI). Instead of eliminating debt, get it manageable and put extra income toward your down payment. Even if you have to put down less money, your PMI disappears once you reach that level of home equity, so make extra mortgage payments when possible.

If you’re handy or a quick learner with a lot of patience, accept a house with some faults for a discount. Persistent pest problems, roof leaks, mold issues, and structural weaknesses are items most sellers won’t be able to attend to before selling. Get an expert inspection and push for a better deal. If the house isn’t move-in ready, you may be able to stay in an inexpensive travel trailer for a few months on your property while you make the home livable. Check local laws to ensure you’re not violating any ordinances.

Your home is one of your most essential investments, so take whatever steps are necessary to get yourself in the right home as soon as possible. With grit and determination, and the help of North Gwinnett SOLD, you can make it happen. Call us at 678-343-8563 today.

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Author: Natalie Jones