The 20% down payment is dead. Don’t hold off on buying a home just because you think it requires a significant down payment or significant funds for closing costs. Don’t get us wrong 20% is good, but it’s not necessary. According to the National Association of Realtors, first-time homebuyers are realizing that they can put down less than 5% for homes with many mortgage programs asking for 3%, 3.5% and even as little as 1%.
- How can you find out about these mortgage programs?
- How can you get referred to a Lender to find out what shape your credit is in?
- What about closing costs? What are they? How much are they and how do they get worked into an offer?
Contact us at firstname.lastname@example.org or 860-539-9076 and we’ll help you understand these steps as well as make the appropriate lender referral based upon your needs.
Speaking to a mortgage lender is a great initial step in the home buying process. Don’t assume that you can’t buy a home…get a definitive answer. Don’t assume that you can afford a $250,000 home…..get a definitive answer. It may surprise you. If the lender says you can’t get pre-approved at this time or for the amount that you’d like, they will help you determine what steps you need to take to get pre-approved (i.e. which debts should you focus on paying off first and which ones are okay to keep making installment payments on). Once you have that knowledge, you can take the necessary steps to get closer to your own home.
For example, a preferred lender that many of our clients work with, Ed Angiollo of Trademark Financial Group recommends:
“Make sure you’re not late on your payments, which seems obvious but many people assume that being late on one month isn’t a big deal and it is. Also, keep your credit card balances below 50% balance to available credit.”
So what do you say?