These days, when you’re buying property, you’re probably already aware that you can get concessions from the seller in a lot of instances. So brush up on how to get the most valuable concessions from the seller that will help you, depending on your situation.
What many do not consider: your best bet may NOT be using all of your down payment money for a down payment. If you want to be more sure that you are going to be able to afford the housing costs of the property you are buying, consider this strategy.
Figure out the maxium principal & interest amount you can comfortably pay. Determine the loan amount & THEN shop for your property with the understanding that you will only pay a minimal down payment to get the loan. This will probagly result in a lower purchase price.
Once you have closed & are in the property, after your first payment is due take the REMAINDER (majority) of your down payment & apply it to the principal balance of your new loan. For instance, If you have 20% to put down, put down only 0-3%, get all the best seller concessions for your situation & then take the remaining 15-17% & apply it to the princpal of your loan. When you check your amortization schedule, you may have wiped out about 10 years of INTEREST on your mortgage!
