Hello to all ! Say I am looking to get into a home in west palmdale ca, after the market returns back to

Asked by M. Michaels, Palmdale, CA Sun Jun 8, 2008

reality, My credit is excellant and I have a small down 5%) Could you please make a few suggestions that can help me to increase the size of my down payment, such as sweat equity, builder incentives, seller assists Ectera, I am open to a complete Jaundra of ideas, Thank you ! M. Michaels

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Tvandemark, , 91355
Mon Jun 9, 2008
Hi , as Jim mentioned sweat equity comes when you own the home to increase the value. Consider buying a fixer or slight fixer if you or your family and friends have the skills to improve the home. There are plenty of fixers available in AV, I was born and raised in AV and know the area well, and service AV too. In addition, bartering with your friends is a great way to save money. You assist them with your stregnths and know how and vice-versa, then it is a win-win and you all save money. Then of course extra work, holiday work, garage sales, and so forth all add up. Once your in a home then there are more tips for improvement and ways to save.

It is best to work with a Realtor when purchasing new or existing homes, so they can aid you in negotiations and refer you in the right direction for a solid ethical lender, that right there can save you money. I recently had to stand up to a lender (a buyer chose) for over charging my client, and other things. Ethical lenders are out there.

Remember it is a declining buyers market in AV and sellers need to participate in aiding the buyer to get their home sold, if they don't another seller will, this is where an agent can assist you in YOUR best interest. Keep your thoughts open to learn and team up with an agent. Keep an eye on mortgage interest rates, that certainly can cost you money. Lots of great buys in AV, live like a king in the great aircraft/aerospace cities!
Web Reference:  http://www.TVandemark.com
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Dyanna, , California
Sun Jun 8, 2008
M. MIchaels, why would you wait until the market goes up again? If you are going to buy, you need to buy when the market is down, not up! And if you are going to buy in Palmadale, now is a great time. The market has taken a serious hit in that area and you should take advantage of it now. As far as closing costs, most sellers, including the bank, will give you about 3% to help pay with closing costs. Please don't wait until the market turns. You need to see a realtor as soon as possible!

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Jim Johnson, , 78233
Sun Jun 8, 2008
Since you may need as much as 4% +/- of the sales price in closing costs, as well as the DP, Any seller assistance with your closing costs will leave you with cash you can use toward the DP.

If you wait for the market to turn around, you may loose some of the incentive for sellers to provide such assistance.

As for the other methods, sweat equity is th added value of any labor you put into improving a home you already own, and builder incentives typically are not the kind of things that equate into an increase in the DP.

If your reason for asking this is to reduce the time during which you will be paying PMI, pay a little extra on the mortgage each month and track the appreciation rates after the market recovers. When you reach that 20% equity mark, you can request that the PMI be dropped.
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