Could Picking Up a Side Hustle Job Help You Purchase a Home?
The most overheard and traditional advice from financial advisors and real estate experts is to make a 20% down payment when purchasing a home. This helps a home buyer to avoid needing to pay for private mortgage insurance which can be thousands of extra dollars every year added into your mortgage costs when purchasing with a conventional loan.
Though the most advised down payment is 20%, mortgage lenders still accept a down payment on a home at a lower rate. There are many loan products out there that advertise taking smaller down payments from anywhere between 3 to 15%. But many of them come with a higher interest rate and a higher monthly payment.
With an increase in mortgage rates and home values continuing to increase it is no surprise that a larger number of potential homebuyers are finding it difficult to put away enough money for a down payment to help lower the cost of mortgaging a home.
A recent survey conducted by the company Homelight showed that 19% of respondents said they got a second job in order to help them make a home purchase. It could be an option worth considering at least for a temporary amount of time to help you achieve your dream of homeownership.
The benefit of taking on a second side hustle job
The idea of taking on more work hours does not seem appealing at first as we all lead very busy lives. Taking on more work hours will not be the easiest thing you do. But if you are serious about getting into a home sooner rather than later a second job may be just what you need to put away money for a significant down payment. The sooner you become a homeowner the sooner you start building your wealth portfolio through equity in your property.
You may find a part-time job that you actually really enjoy and it becomes more like a hobby that comes with the benefit of being able to get into a home sooner. There are many different options for Americans to take on a few extra working hours to help them save money at a quicker pace.
How can you find a temporary part-time job that is right for you?
The work you take on should take into consideration your strengths and talents and the things that you enjoy doing. Think of the things that you are particularly good at or love to do and see if there is a job available that needs those skill sets.
There are several jobs available that allow the job holder to pick their hours so if it is not necessarily the type of work you love it can be work that you do on your own terms which can be empowering and encouraging. For example, offering driving services like running to the grocery store, or delivering a takeout meal. The only skill you need is to be able to drive a vehicle.
Picking up extra hours may have you surprised at how quickly you can pad your savings account to make that much-needed down payment and get into a home you can afford.
For information on purchasing real estate in West Ocean City and surrounding areas please contact us anytime.