You’re buying a home, congratulations. How much money should you put down? I’m going to give you that answer next.
When you are purchasing a home, depending on your loan, your loan may actually direct how much you need to put down; for example, currently FHA requires that you put 3 ½ percent down for your purchase.
A typical Conventional Loan requires 20 percent, although I’m seeing some as low as 10 percent right now. VA loans are zero percent down. In addition to your down payment, will be your closing costs. Depending on your loan and depending on what you might be negotiating with your mortgage, your average closing costs are anywhere from three to three and a half percent of the sales price. And that is going to be on top of however much money you are putting down, based on your loan.
Putting more money down may give you a better interest rate. It may be just what you need in order to make sure you have proper reserves to continue your mortgage payments once you are in the home. And also the term of your mortgage, many of them are going to look at how much reserve you have left. So talk with your mortgage professional about how much money you’d like to put down, whether that puts you in a position for success moving forward.
If you have questions about buying or selling real estate in Northern Virginia, we’d love to hear from you. Give us a call… we’ve got the answers.
|Real Estate Expert, Steve Bradley has been advising home owners, home buyers, professional Realtors and real estate attorneys on the real estate market in Northern Virginia since 2002. His passion to share his knowledge and experience separates him from so many others. If you are looking for someone that is easy to work with and truly focused on helping you through the selling or buying process Steve is an exceptional option.
DISCLAIMER: Steve Bradley is not an attorney and not offering legal advice. He does not hold a real estate brokerage license in any every state. Laws, requirements and local policies differ and selling and buying real estate can have significant legal implications. Always seek the advice of a licensed attorney and/or real estate broker if you have concerns about your sale or purchase of a home.