How Much Do You Know About Down Payments?
Whether you’ve owned a home before, or you’re ready to jump into homeownership for the first time, there are always a lot of questions swirling around about what is truly required for a down payment, and how to best source down payment assistance. Let’s tackle these two today.
1. How much do you really need for a down payment?There is a long-standing misconception about down payment requirements. A survey from Fannie Mae shows only 17% of consumers know the minimum options are actually between 1 - 5% of the purchase price and 40% don’t know how much they need at all.There are many mortgage loans available that require as little as 3% down for first-time buyers, and some ask for only 3.5% down from repeat buyers. There are even loans available for Veterans that provide 0% down payment options too.
There has been a lot written about the benefits of homeownership. One benefit that continues to rise to the top is the added wealth homeowners gain simply by paying their mortgage while their home increases in value over time.
The National Association of Realtors (NAR) recently broke down the equity gained from price appreciation and principal payments in their Economists Outlook Blog. Homeowners who purchased their homes five years ago have already gained almost $80,000 in equity over that time with 80% of the gains coming from price appreciation.
Savvy home buyers, like you, interview multiple buyer’s agents before deciding on whom to hire. It’s in your best interest to ask them some or all of the following questions to gauge their knowledge and whether or not they fit with your needs.
Take a look below at our list of the best questions to ask a real estate agent and let us know if there are any additional questions that you have found valuable when interviewing agents.
How to Sell a Home For The First Time
Selling your home is a big deal, and is not a process that most people go through too often. There are many things to consider as you move forward with your sale – things that must be dealt with if you want to sell quickly and for a good price.
Purchasing a home is a major milestone that tops many people’s lifetime to do lists—and maybe their list of financial fears too. But it certainly doesn’t have to be a scary or stressful experience.
With time, care, and research, you can take control of the home-buying process.