No Savings? Problem or Not?

Many would-be homebuyers are often heard that they are saving to buy a home. Some have discovered newer ways to accomplish the goal sooner.  I’m happy to see that these future homebuyers are asking the right questions and seeking advice from mortgage advisors.

Recently, I was asked about how one of the newer ways to save for a down payment worked through a crowdfunding site. First, I want to remind everyone that whenever there is an offer of money, there also come requirements. Nothing is ever free.

Sites like apps and offers are backed through companies. I understand it can be frustrating when there is no one to speak when there are questions through one of these sites. When you are making your mortgaging plan, I suggest making the plan all the way into making payments and living in the home and having questions about your mortgage after moving into the home. This can help you envision the full process when you choose your method of mortgage.

Crowdfunding sites are web-based sites. The site asks you to add photos and a story. To my knowledge, there is a not a guide about what is okay to share and what is not okay to place on the site regarding privacy protections. You are solely responsible. These sites offer a prequalified online application prior to crowdfunding and you may be assigned to a fundraising coach who later may seek to mortgage your home.

As you “raise” funds through friends and family by crowdfunding, your social media accounts are linked to the crowdfunding site. Fundraisers raising a down payment share with friends and family that this is not a fake request, but real. Often, fundraisers tell about recently paying for a wedding or about being denied a mortgage loan because of lack of savings.

When a goal is reached through the crowdfunding site, the backer of the site may seek to finance a loan. There are more questions than answers about crowdfunding. Keep talking about all of the plusses and minuses and thank you for emailing your questions to me at MPattullo@PeakMtg.com

We lend where we live,

Michael Pattullo
Peak Mortgage
Mortgage Advisor • MLO# 229675 • Peakmtgnw.com
360-607-9312

P.S. Readers – Thank you for continuing to email me at MPattullo@peakmtg.com, I appreciate it!