The first step in home buying |

The first step in home buying

One of the first obstacles for many first-time homebuyers is the down payment. A down payment is the money a buyer pays up front during a purchase, and it serves two general purposes. First, it shows the seller, and the mortgage lender, that you are serious about buying this property. The fact that you are willing to part with a large part of your savings, indicates you are a committed buyer. Second, the down payment will help reduce the amount of money you will need to borrow. The larger your down payment, the less you will have to pay on your monthly mortgage, and in interest costs.When you’ve decided it is time to start saving for a home, it is wise to do some research first. To see what homes are selling for, look online, and in the newspaper. You can start on my Web site at HYPERLINK, where you can search all the properties currently for sale through the Summit County Realtor Multiple Listing System. You can also use the Internet to investigate different lenders, and interest rates.Once you are familiar with the general conditions, contact two professionals: a Realtor® and a mortgage lender. A real estate professional can further educate you about market conditions, and help narrow your search field. Be up front, and let her know that you are just beginning this process, but are trying to determine how much you will need to save for a down payment.A mortgage professional will be able to review your financial situation, and let you know what size mortgage loan you should be able to qualify for. He, or she, can tell you even more about the types of loans available. While a down payment of 20 percent of the purchase price is still common, there are many other mortgage products that allow buyers to make a smaller down payment of 10 percent, five percent, or even less. Again, when you speak with the lending associate, explain that you are just beginning to save, but want to learn about your options. Armed with some information about market conditions, and the different types of mortgages available, you can craft a plan that will help you save for that all-important down payment.

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