Your down payment plays an important role in the type of house you can buy and the loan you can get. The larger the down payment, the better chances you have of getting a lower interest rate, and the better chances you have of getting approved for a loan to begin with. Generally, a larger down payment will lead a lender to possibly look past bad credit and proof of income sources.
If you are putting down an amount that is less than 20% of the purchase price of the home, it is probably too small. If this is the case, you should look into purchasing private mortgage insurance which will protect the lender.
There are several alternatives available to people who lack the necessary amount for a reasonable down payment:
If only it were that easy. There are potentially dozens of other costs, considered closing costs, to be paid out prior to the completed sale. Closing costs are based on closing practices which vary from state to state and possibly between counties as well. Examples of such fees include appraisal fees, recording fees, transfer taxes, and survey costs.
Buying and financing a piece of real estate can be one of the most important experiences in your life. An attorney can advise you of the different mortgage financing options for this financial endeavor. An attorney can also review any financial documents, and advise you about your obligations and the best way to proceed.
Last Modified: 03-27-2012 03:42 PM PDTLaw Library Disclaimer
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