How Much Should You Put Down When Buying A Home?

If you are considering buying a home, you might be wondering how much you should be putting down for a down payment.  Having a professional real estate agent by your side to assist you with the offering and down payment process is vital for a smooth transition.  Here are some must know things you should know before you decide how much to put down on your next property.  

Do You Need a 20% Down Payment on a House?

20% can seem unrealistic at first glance.  The good news is that the majority of lenders do not require 20% at closing anymore.  However, paying the full 20% at closing can be helpful for you.  Before making the decision it is important to look through some pros and cons first.    


There are many factors that benefit from placing a bigger percentage down payment on your property.  Let’s go over a few of them.  Placing a 20% down payment can assist you in avoiding private mortgage insurance.  You will also see a better interest rate and even lower monthly payments.  However, if you have already considered putting that much down from the start it can benefit you when it comes down to a property with multiple buyers interested.  Although these benefits sound good there are some other aspects to consider before pulling the trigger on your big down payment.  


Putting down 20% is not the right move for every buyer.  Simply put, some people can not afford it.  Others may think it is smart to keep that extra cash reserved for repairs to the property where they are needed after closing on it.  When trying to consider how much of a down payment to put down there are some drawbacks to consider.  

First off, there is more fiscal risk when putting money down on your mortgage.  If there is something that is coming up that you may need that money for in the future it is recommended to put down less and instead put it into your emergency fund.  Another aspect of putting down too much is that you will not have cash reserved for needed repairs on your new property.  Leaving you waiting and adding more projects to your to-do list.  Lastly, the more obvious reason would be the time and effort it takes to save up that large amount of money.  Especially while life and opportunities seem like they are passing you by as you are continuing the saving process.  

Can You Buy a House Without a Down Payment?

It is possible to buy a home with no money down, however you will not be able to get a zero down conventional loan.  You will have to get a government backed loan.  Currently you can buy a home with no money down if you qualify for a VA loan or USDA loan.  A VA loan are mortgage loans for current or former members of the Armed Forces.  USDA loans are mortgage loans for homes in qualifying rural and suburban areas.  

Contact Vanessa Auguste Today! 

If you are interested in buying a home do it the right way with the help of a professional real estate agent.  Vanessa is a certified REMAX realtor.  She will assist you from start to finish during the buying process.  That even means any questions you may have with down payments.  Get started today by giving Vanessa a call at 514-831-4016 or by filling out a contact form

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