Down Payment Guidelines On Home Purchase Mortgage Loans
In this article, we will discuss and cover the Down Payment Guidelines On Home Purchase Mortgage Loans.
What Are The Down Payment Guidelines Versus Closing Costs
With the exception of VA and USDA loans, all mortgage programs require a minimum down payment requirement.
- There are two types of costs involved when buying a home
- The first cost is the down payment
- The second is the closing costs
- The down payment is a fixed percentage
- The amount required depends on the loan program
- Closing costs vary on various factors including the area the property is located
- Most of our borrowers at Gustan Cho Associates Mortgage Group do not have to worry about covering for closing costs
- Our team of experienced loan originators will instruct the buyer’s realtors on how to get sellers concessions so the buyer does not have to pay for closing costs out of their pocket
If the homebuyer is short of covering the closing costs with the sellers’ concessions, the lender can give a lender credit to cover the shortage.
How Much Home Can I Afford Versus Qualify
A home is most people’s largest investment in their lives.
- There are many thoughts homebuyers should consider prior to pulling the trigger on a home purchase
- When homebuyers get a pre-approval by the loan officer, find out what the monthly payments PLUS other housing expenses are
- Mortgage underwriters do not take utilities, personal finances, education expenses, child care, elderly care, vacation, and other personal expenses when qualifying borrowers for a mortgage
- Seriously think about what the maximum housing payments you will be able to afford
- You do not want to be house rich and poor in keeping up with your lifestyle
In the following paragraphs, we will discuss and cover the frequently asked questions by first-time homebuyers when buying a home.