Why You Don’t Need 20% Down on a Home
You don’t need to put 20% down on your new home, and here’s why.
How much money do you need to buy a home? How much money do you actually need to put aside to get a mortgage? Today I want to talk about the single most damaging belief homebuyers have. It can stop a lot of people before they even really try to buy a home.
Most homebuyers think they need to put 20% down. You don’t! If you can put 20% down, that’s awesome, but don’t get caught up on it. If you put 20% down, you’ll get preferential treatment from your lender, and you won’t be classified as a high-risk loan.
However, if you can’t do 20%, there are plenty of other mortgage options out there. We have clients who are getting as low as 3%. You could also look at getting a 15-year mortgage instead of a 30-year one.
You don’t have to put 20% down on a home. You have options.
You might be wondering, “How do I know what the best option is for me?” The answer is, I don’t know! To figure that out, you need to talk to a mortgage lender that you can trust. If no one comes to mind, please give me a call, and I can connect you to someone I trust with my own mortgage.
If you talk with a lender, they can help you figure out what down payment options, what kind of rate, and what terms you qualify for. If you talk to a lender early, they can also look at your credit score and help you fix anything that might be an issue. It’s good to catch those issues upfront, so you can start working on them right away and raise your credit score.
Again, I would love to connect you with a lender you can trust. I’m here to support you. Just call me, email me, or click this link. I would love to help you.