For many, down payments on a house are the toughest part when it comes to buying a home. That, and qualifying for the mortgage.
Let me explain...
There’s two main things that people struggle with when it comes to putting a down payments on a house:
- Saving up enough money for the down payment so you can buy a home.
- Having the cash available for the deposit. For many, it's tied up in their current home equity or in investments.
When people buy a home, there’s two main instances where you will need to have money available. The obvious being on closing day (when you get the home) because you have to provide your 5%+ down payment on the house.
The other more overlooked time is the deposit required upon acceptance of an offer to buy a home. You need to provide a deposit with your offer. Depending on where you’re buying, that could easily be up to 10% of the value of the home you’re buying.
Not everyone has that type of money available. Traditionally with down payments on a house, people will take a line of credit on the value of their home or liquidate their investments.
Both of those options take time, can require bank approval and home appraisals and can be costly.
The next big thing in down payments on a house is making the deposit process quicker, easier and more flexible - this is our vision at Home Deposits Now.
Instead of having to come up with cash for the initial deposit that eventually will become part of the down payment on a house, you can use a deposit guarantee. This allows you to keep your money where it is until you actually need it to close on a home.
Deposit Guarantees in lieu of deposits allow you to make offers and have the deposit instantly available for the offer. You can also increase it on the spot, making your bids more competitive.
You won’t need the cash for the down payment on a house until the closing date. You can leave your money in your home equity or your investments and avoid costly bridge loans.
It provides you with much more flexibility and can save you money too.
Our Deposit Guarantee allows you to take advantage of the next big thing in down payments by offering deposit guarantees on the purchase of your next home.
If you have any questions don’t hesitate to reach out.