Home Buyers are always looking for the lowest down payment possible. And finding the lowest down payment doesn't have to be a major feat. In fact, it really isn't that difficult. All you need is some good realty advice, a bit of negotiating savvy, and some good old fashioned hard work. Here are some tips from my personal, real estate experience on how to get a low down payment on your next home purchase.
Lower down payment: Homebuyers in today's market will have to go through some serious negotiating. Your overall down payment will likely be dependent on the kind of mortgage you take out and the current interest rate. Some traditional loans aimed at first time home buyers with good credit allow up to as low as 3%. But even a modest down payment can prove challenging to save. So if you are a first time home buyer who has a low credit score, I suggest checking out some real estate magazines and looking for special offers from home sellers before you approach your bank or mortgage company to apply for a mortgage loan.
Private mortgage insurance: Many cash for houses company avoid taking out conventional loans because they fear that lenders will not approve the money. This is simply not true. Lenders are much tougher on people with poor credit scores when it comes to lending money. If you have a flawless credit record, I recommend you look into getting a non-conventional loan instead of opting for a conventional loan. This may require some extra work on your part but the end result will be worth it.
Emergency fund: One of the biggest concerns for first home buyers is whether they will be able to afford a down payment. If you have a large emergency fund set aside each month, you will be much better off as a first time home buyer. You will also have more money to put towards your mortgage loan. Remember that you are an individual with unique circumstances. So if you have debt-free in the past but want to get into a mortgage, take this time to work on creating a debt-free emergency fund. Learn how to get a quick house sale today!
Lower monthly payments: A major concern for first time home buyers is whether they will be able to afford their home payments after they receive their loan. People often mistakenly think that a 30-year fixed-rate mortgage is going to cost them everything that they have. This simply is not true. If you shop around, you will find that many mortgage lenders will be willing to reduce your interest rate or offer a lower interest rate if you agree to a longer-term length. Read more about real estate at https://www.britannica.com/topic/real-property.
These are just some of the tips that recent buyers' guide will touch on. If you are ready to make your home buying process easier and stress-free, consider speaking with a real estate agent that specializes in assisting first time home buyers. Not only can they guide you through the current real estate market but can also help you with tips that have been proven to work.