The fact that you’re reading this means that you’re thinking about buying your first home. Congratulations potential first-time homebuyer!
We know you’ve probably heard lots of high-stress stories that are making you question if you’re even ready for this major life decision. Here are few important things you need to know as a first-time homebuyer.
You should start saving for your down payment early.
Although there are some mortgage options that require no down payment, most mortgages do require one. But what is a down payment, really? A down payment is an amount of money you must pay in a lump sum to the seller of the home.
The standard conventional loan down payment is 20% of the home value. That means if the home costs $150,000 you will need $30,000 to pay as a downpayment. Sounds like a lot of money, huh? We get it.
But, don’t let that scare you away because according to a 2017 study by the National Association of Realtors, 81% of first-time homebuyers make a down payment of less than 20%....