You have probably heard of the old saying “there is more than one way to skin a cat”. This phrase is appropriate for many different things. Simply put, there is more than one way to achieve your goal. This can also apply to home buyers. That is because there is more than one way to save for a Reno home.
Most Reno Home Buyers utilize their savings to come up with a down payment on a home. Any Buyer with 20% or more of the purchase price to put down on their new property will not have to pay PMI (Privatized Mortgage Insurance). This can save you anywhere from hundreds to thousands of dollars per year on your mortgage payment. Also, the more money you put down, the less you have to pay every month.
Like we said before, there is more than one way to save for a Reno home. A savings account is a good place to start. However, you may want to consider selling some stocks and/or bonds. Even with the roller coaster ride of a real estate market we have experienced here in the Reno community in the last decade, a home is still a solid investment. Some Buyers are lucky enough to have received monetary gifts from their parents, grandparents or aunts and uncles. You might want to consider tapping into your retirement funds to help add to your down payment. Of course, there is always the smart choice of re-investing profits from your current home’s sale into the purchase of a new Reno home.
Are you a first time homebuyer? Have you and your spouse decided not to use your investments or retirement funds for anything other than when you retire? Talk to your Reno REALTOR® about Down Payment Assistance Programs through the Nevada Housing Division, Nevada Rural Housing or the PenFed Foundation (for military members and their families). Your REALTOR® or lender should be able to get you the information you need on any of these programs.