If you’re getting ready to purchase your first home you are likely closely watching your finances to ensure you have enough to put forward for a down payment. Though there are other costs to consider when purchasing a home, a down payment tends to be the largest upfront investment. So, what might you need to know?
20% is NOT always the typical down payment.
According to Freddie Mac and Keeping Current Matters, “…nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership”. Corken + Company is a team of experienced real estate professionals, not mortgage lenders, so what is best for you is ultimately up to your lender. However, knowing that you may not have to put down as much as what is typically discussed is a positive. In fact, the median down payment today is 14%.
Finding a trusted lender is key to understanding what you can afford. Understand that finding the perfect lender is just like finding the perfect realtor. Interview lenders, discuss where and how they fund their loans, discuss options that may fit you, and do this with multiples. Just because your family member or friend had success with one lender does not necessarily mean they will be able to get you a rate that fits your financial situation.
Preparing and saving may also take simple shifts in your day-to-day spending. Discuss with your lender what your down payment is and consider where you can adjust your weekly and monthly budget to afford putting more away towards your future. You’d be surprised at some of the small shifts you can make!
In the end, a home purchase is a large financial investment. But, it is important to understand that that investment may not be as daunting as you once thought. Your experienced realtor, like one of our team members at Corken + Company, can help offer lenders that can help to make your dreams of homeownership possible. Contact us today to start your home search! 303-858-8003
Contributions from: https://www.keepingcurrentmatters.com/2023/01/03/wondering-how-much-you-need-to-save-for-a-down-payment/