How will I pay for a home purchase?
“The average down payment for a first time home buyer is 6%”
Many people still believe that you need 20% of the purchase price of a home for a down payment. In actuality, the average down payment for a first time home buyer is 6% and there are conventional loans that require as little as 3% down to be financed. In addition, some individuals qualify for 100% financing, down payment assistance, grants, and closing cost assistance. If home ownership is a goal for you, but you think you can’t afford it, having a trustworthy lender walk you through the pre-approval process is the best way to know what you can afford now, and, if you are not ready or happy with that number, a reputable lender will also help you with a financial plan or credit recovery that will get you on a path to complete those goals.
Choosing a lender is a crucial piece of the home buying process. In addition to offering you a competitive interest rate and fees, and an attractive monthly payment, you want your lender to be a skilled communicator who knows you by name and answers your calls (and your realtor’s calls!). Before and during the transaction there are a number of things that can arise where a responsive, experienced lender can make or break the deal. When a listing agent sees that you are pre-approved through a reputable lender, it makes your offer stronger. And, after you find the right home and you are in contract, a trustworthy lender is a vital member of the team, updating your realtor about closing costs and the appraisal, which can help when it comes to negotiating on your behalf.
