Loan For a House?
A Reason You Won’t Buy a House
One of the reasons you won’t buy a house is because you can’t come up with the 20% down needed for the down payment, right?
It’s true that having a bigger down payment cuts the overall costs associated with getting a mortgage loan: borrowers likely will have to pay higher costs over the life of the loan – including higher interest rates and usually mortgage insurance.
However, according to a National Association of Realtors profile report, for the past three years, the median down payment for first-time buyers has been 6 percent and 14 percent for repeat buyers. But, when consumers are asked about the down payment amount they need to buy, 87 percent of non-owners say that a down payment of 10 percent or more is necessary.
The Wall Street Journal also reports that some lenders are luring more home buyers back by waiving mortgage-related fees and even showing more acceptance of allowing down payments to be made by others, such as the borrower’s family members.
So, what does this mean for you? There are mortgage options available for creditworthy borrowers with manageable levels of debt and smaller down payments. If you are interested in buying your first home in 2017, you should do the following:
1) Review your finances,
2) Sit down with a lender to see how you can qualify for a mortgage, and
3) Call me at (650) 483-4932 to help me find your home!
rafaelcastrojr@gmail.com 650 483-4932
