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? Â What are they? Â How much are they and how do they get worked into an offer?
Contact us at harrisonrealtyteam@gmail.com or 860-539-9076 and we’ll help you understand these steps as well as make the appropriate lender referral based upon your needs. Â
Speaking to a mortgage lender is a great initial step in the home buying process. Â Don’t assume that you can’t buy a home…get a definitive answer. Â Don’t assume that you can afford a $250,000 home…..get a definitive answer. Â It may surprise you. Â 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). Â 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?
Are you ready to get matched to a mortgage lender and a home?! Â Contact us here.