What's the Perfect Down Payment
When Buying a Home?
A 20% down payment is often heralded as the perfect goal for those contemplating the purchase of a home ...
And it's hard to argue that there's anything wrong with having that goal in mind when saving for an upcoming home purchase. The financial discipline it takes to save that amount of money is considerable.
Yet I have found as a Mortgage Originator, that this goal often seems totally unattainable to many dreaming of buying a home. And as a result, it looms over them mentally and keeps them from inquiring about what options they might have at their disposal to buy.
That's sad ...
Because fact is: There are many NO or LOW down payment mortgage options now available to both First-Time Home Buyers and Move-Up Buyers. Mortgage Originators, such as myself, currently have a menu of mortgage programs to consider from when trying to assist potential Borrowers.
But let's dive into the topic of down payments a bit more deeply ...
Borrowers need to know and understand: Even when they've saved a down payment, it's not always the wisest financial move for them to use it as a down payment ... or use it in its entirety when it comes time to buy.
Yes, you heard me right ...
Even if a Borrower has saved money for a down payment ... it's not always their wisest financial move to use it in that manner.
In my post, "The Modern Mortgage and Mortgage Process are Much Like a Fingerprint or Snowflake ... No 2 are Alike", I explained how "tailor made" modern mortgages have become. And how the financial scenario and needs of each individual Borrower must be taken into consideration when choosing a mortgage program and structuring loan payments.
Because a menu of mortgage programs is available, Borrowers may have options from which to choose. This can be a huge benefit to Borrowers.
This is precisely where your LO's experience, knowledge, and expertise really comes into play. A good LO will have educated themselves not only to your present or short-term needs ... but to your long-term goals as well.
What factors might enter into a decision at this point?
- The total amount of funds saved by or available to the Borrower
- What expenses the Borrower may still have upon moving into their new home
- How long they plan on staying in their home
- If Seller-funds are offered for Closing Costs
- If gift-monies are available for assistance in buying
As you can see, there are many options available to home buyers unable ... or not wanting ... to offer a 20% down payment.
My goal with this post is two-fold ...
First, and most importantly: If you hope to buy now or in the future, talk to a Mortgage Originator immediately.
Have a thorough conversation with them about your credit standing, finances, hopes, and dreams. The sooner you hold the conversation, the faster you can get started on your dreams.
This simple act will help you immensely in a myriad of ways. You'll find out where you stand currently. What options, if any, are available to you to buy now and in the future. And you'll gain sound advice for moving forward.
Second: Don't be discouraged by what you read or hear.
Don't be discouraged should you not have a full 20% down payment available to you. And don't assume you know the answers to mortgage and financial questions you've never asked.
Get facts. You'll be glad you did ...
In Illinois, the Chicagoland area, and Wisconsin, please contact me. I'll be happy to hear from you and put my 37 years of mortgage experience hard to work on your behalf.
I can be easily found at:
NMLS #21697 - IL Lic. 031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.
Your Referrals are Greatly Appreciated!