Blue Ridge Real Estate

• Set clear goals and commit to them. Decide what needs to be done first and draw up a plan to do it. If you have minimal debt but your income does not allow for much leeway, see our tips for making room for savings. If, however, you have too much debt to even begin thinking about saving, decide to do something about it and don?t back off.
• Systematically pay off any existing debt you might have that would hinder you from being able to get or pay a mortgage loan. There are worksheets available to help you pay off your credit cards, but you must have an income bigger than your outflow, which means that, first and foremost, you might have to stop spending as much. Avoid paying for help with this, as there are organizations that will give you free financial advice, or you can find a friend who seems to have their finances under control, swallow your pride and ask for help.
• Refrain from shopping for entertainment. There are much cheaper ways to amuse yourself. Don?t go to the mall unless you have a clear idea of what you need and make sure you decide before you go that you will only buy that one item. Discover thrift stores and garage sales, not for unnecessary spending, but for items you need that can be found more cheaply.
• If you cannot control yourself with your credit card, cut it up and deal only in cash. This is a good idea anyway, because it has been proven that even when buying needed items, when paying with a credit card instead of cash, people tend to be more liberal with the price they will pay.
• Balance your checkbook regularly to make sure that your bank account will not be overdrafted. Bank fees may not seem like a lot of money, but it doesn?t take long for them to add up.
• Before making any major purchases, wait a week or two, ignoring all sales pitches that claim, ?This sale ends tonight at midnight.? People who make such claims are often very motivated sellers and if you go back to them two weeks later and ask for the same deal, they will most likely grant it. Even if they don?t, you will find another such deal somewhere. It is possible that after the two-week delay you will get an even better deal than originally offered. Patience is rewarding.
• Instead of going to movies, rent them. A rental fee is much cheaper than movie tickets for the entire family and the popcorn is a lot cheaper, as well!
• If you have a tendency to go over your cell phone minutes, exercise more self control. Wait until you get home to make your phone call. Or consider canceling your home phone and put the money toward more cell phone minutes. In either case, make sure you don?t exceed your allotted minutes per month.
• Be less generous with gifts. True friends will understand your need for frugality, and those who don?t aren?t worth the money you spend on them.
• Instead of buying unnecessary items such as sodas, cookies and ice cream, calculate what you spend monthly on these kinds of things and put it into a savings account.
• Don?t ?invest? in the lottery, but instead lay that money up.
• Instead of paying for cable, save the money. This is harsh, I know.
• Find a way to commute to work with a friend or co-worker. You will save on the gas on money and will also be helping the environment.
• Don?t buy as many CD?s or movies.
• Turn off lights when you are not in the room. Raise the ac temperature when you leave the house for the day. When the weather is pleasant outside, such as during the fall and spring, consider turning off the ac and opening windows and creating a cross draft. The fresh air is actually very refreshing and this also discourages mold from forming in your ac ducts. Another way to save on electricity is to limit the use of your clothes dryer and dishwasher.
• Instead of eating out as often, make simple meals at home and?yes, you know, put the money in the bank!

Other than saving what you already have coming in, there are other ways to save money for down payment. Here are a few suggestions:

• Temporarily acquire a second income and diligently save this money.
• Partner up with another individual to help you qualify and to pay expenses.
• If possible, liquidate other assets or borrow from your life insurance cash value, your 401(k) retirement or other securities, etc.
• Look into the possibility of consolidating your present loans into one package. Call up old debts and borrow discretely from friendly sources who will allow an extended payback period. Be diligent later about repaying as specified.

If you have done all that you can to save money for a down payment, then it is time for you to look for ways to lower the amount of down payment needed.

• Start first with investment property which will set you up financially for the house of your dreams. An example of investment property would be a duplex. If you buy the entire structure and live in one side while you rent out the other, you are in effect letting your renters pay for your mortgage. The money that you save in rent can either be used to reduce the principle of your mortgage or to be put in a savings account for use as a down payment for your next house.
• Seek for a co-signer.
• Seek to take advantage of first-time buyer programs by the government, or SBA packages if it income producing property you?re after. Take advantage of government insuring or assistance programs.
• Try for a loan with a zero-down payment, or at least a zero-point loan.
• Shop diligently for the lowest points and interest rate.
• At least price an ARM (Adjustable Rate Mortgage). It may cost you more during the pay-back period, but then an ARM will allow you to get into the real estate in a more timely fashion.
• When you find the property you?re after, ask the seller if he would be interested in a second mortgage. As part of the negotiations seek to get the buyer to buy down either the points or the interest rate of the mortgage.
• Close on the deal as late in the month as possible which will reduce the proration expenses.