To buy an apartment or a house, you usually need to have the required funds. But you can get past this hurdle by following a few guidelines. Once you have these in place, you can get your dream apartment.
Rising real-estate prices makes buying an affordable home challenging. But before you embark on searching for a home, you need to organize your finances. Of course, the most important aspect is your credit history.
Even if you are unemployed, it is still possible to get an apartment if you have a good credit history. You can also show proof of any savings you may have or other cash assets.
What Are Your Options?
There are a few options available in getting an apartment without money. They are :
- Rent from an individual
- Show proof of savings and other income available
- Provide reference letters
- Pay a few months’ rent as a security deposit
- Offer to move in straightway
- Build up your credit
- Get a co-signer or a roommate
Who Should You Ask?
The most common step is to get private financing. This involves asking friends or family members for the money to use as a security deposit. Then, you can get them to be a guarantor.
You could also get a loan from a financial institution. Although, you need to be financially stable to pay back the loan.
Are There Any Organizations That Can Help You?
You can make use of government financial support programs to help get your apartment. Some of them are :
- The Department of Veteran Affairs provides loans that guarantee purchase mortgages and do not require any down payment. To qualify for this loan, you should have a Certificate of Eligibility relating to your military record along with an honorable discharge.
- The Navy Federal Credit Union Loan – no down payment or private mortgage insurance is necessary. To qualify, you should be in the military or work for the US Department of Defense.
- USDA Rural Development Loan – the mortgage comes from a bank but is guaranteed by the USDA.
Common Scams You Need To Be Aware Of
When getting an apartment, you need to be careful of scams. Be prepared to do a thorough check before committing yourself. Be wary of apartment listings that do not require credit checks. This is the most common scam.
Do not pay the security deposit before you sign the lease. This includes the rent as well. Before making any payment, always inspect the apartment.
Always deal with the rental owner in person. This will eliminate any misunderstanding that may arise if dealing with a second party.
Never agree to a wire transfer if requested by the owner. Once the funds are transferred, and a problem arises, you may not be able to get a refund.
Things You Should Avoid Doing
When negotiating for a good deal, always ensure that you do not end up paying a high-interest payment instead of a down payment. Also, do not look for apartments in expensive areas. This will not be cost-effective in the long run.
Do not neglect your credit score. The history of maintaining a healthy credit score will go a long way in helping you get your apartment.
Final Thoughts on Getting Apartment with No Money
Getting an apartment without any money is possible, but you have to follow certain guidelines. The most important one has a good credit score. The higher the credit score, the more confidence you can have in your negotiations.
Take your time in searching for an apartment that will fulfill your expectations. Once that is sorted, you can then start negotiations.