Attention Graduates! Learn How To Start Saving For A Home Today!
Congratulations grads! You did it! Graduating is an exciting time in your life! The inevitable question always lingers: “what’s next?” If you are considering home ownership, you are already a step ahead!
Rent or Own?
One of the misconceptions people have about owning a home is that it costs more than renting. The rent prices have been increasing over the last few years making the cost of renting the same as a mortgage payment (sometimes MORE). Home ownership is associated with more up-front costs than renting however you could potentially earn that money back. The value of your future home may increase over time providing you with a return on your investment. California has an extremely profitable housing market.
Here is an example: In 1998 you purchased a home in California for $200,000. Despite the up-front costs and the down payment, you made the leap into home ownership. Fast forward to 2019, your needs have changed and you want to sell your home. You sell your home for over $600,000 dollars! That is money in your pocket and money that goes right into your next down payment! You can read more about the perks of being a first time home buyer HERE and start planning for your future today!
How Will I Afford A Down Payment?
Many first time home buyers still believe a 20% down payment is required before you can get approved for a mortgage. That is how conventional mortgages were designed however there are more options for buyers today. FHA loans, VA loans, and USDA loans provide different rates and charge insurance differently. It is important to choose the loan that fits your downpayment needs. Read more about your mortgage lending options here.
Let’s talk savings. Your best change to get the property you desire in the time frame that works for you is to have a down payment saved so you are ready when you find your perfect home. After considering your options, you have decided what your target down payment is. You just graduated, you might feel like that amount of money is unattainable for you to earn within a reasonable timeframe but what if you didn’t have to wait that long? Crowdfunding could provide you with the down payment you need, in the time you need it.
Crowdfunding is exactly what is sounds like – it is the use of small amounts of money from a large amount of people to help you finance your first home. Your graduation party is approaching, and you’ve probably heard that your graduation gift is… MONEY! Some graduates might want to spend that money ASAP. What if you INSTEAD contributed that money towards a savings account for your first home? Check out this graph:
If you invite 100 people to your graduation party and they gift you $100 dollars each, that is $10,000 going towards your down payment! Not ready to make the jump into home ownership yet? Throw that money into a savings account and earn money from interest! When you are ready, the money is yours for the taking.
How Can I Start?
When you are ready, you can reach out to Angie or the Vow2Save Team and they will help you make every step to purchasing your new home easy and exciting! Then you will be able to customize your very own website however you would like. Let your friends and family know that you have a goal of becoming a first time homeowner and direct them to donate on your website! As donations roll in, the meter on the website will grow. This encourages your friends and family to help you reach your goal.
Ready to start saving for your home? Check out Vow2Save and start planning your future today. By the time your wedding rolls around you can create a wedding registry that will fill your home with things you love!
Contact the Vow2Save team today 1 (949)-338-7408
Orange County Real Estate Success 
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