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Every once in a while, the stars align and things fall perfectly into place. That’s the case right now, with tax returns and stimulus checks coming in just in time for the spring home buying season! With a little planning, you can use this income to put together a down payment for your next home.
Class is in session! It's time answer your mortgage questions. Questions about home loans can come from all kinds of home buyers. Whether it's your first home, or you're looking to upgrade as your family grows, the housing market can be daunting to even the most seasoned buyer. The housing bubble burst of 2007-2009 still has many folks a little gun shy. One mortgage question we hear from folks is "Where can my down payment come from?"
From blog comments to social media posts to emails, we get lots of questions about buying and financing a home. We do our best to answer them privately and publicly, in hopes of helping the person asking but also anyone looking to buy. We recently received the question below: My wife and I are currently beginning to think about buying our first home. Would it be in our best interest to save for a down payment or pay off some bills before a purchase is attempted?
Down payments for a house vary from buyer to buyer, house to house and between mortgage loan options. A lot of factors go into the down payment amount. Add to that your closing costs, and the answer to "How much down payment for first time home buyer?" is way too broad for a single amount. However, we can help you plan - and decide on a route you want to take to buy that first house. Download our Mortgage ready Guide for the First Time Home Buyer here and learn more!
Down payments are required on almost every mortgage loan out there right now. Only a couple programs do not require the buyer to have a little “skin in the game.” For first time home buyers having a large cash reserve can prove to be a problem. Let’s look at a $70,000 house with a 5% down payment. This means you will borrow $66,500 from the lender, add $3,500 of your own money, and give the $70,000 to the seller. Because a down payment does not include closing costs or cash-to-close, you will also need to have other money at the time of closing. This could mean that you need around $9,000 total for the 5% down payment and the money for closing.
At Amerifirst, we never lose sight of what you want: a place to call your own. And if you're thinking of buying your first home, you're probably got lots of questions, such as: Q: How much money do I need for a down payment?