Frequently Asked Questions
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No, there is no set amount that you must put down. Mortgage loans can now be tailored to fit each home buyer’s needs and financial resources. The standard was 20 percent, but lenders today recognize that 20 percent of the sales price is a tremendous amount of cash for most first-time buyers. Today first-time buyers commonly put down 3, 5 or 10 percent of the sales price, and you might be surprised to learn that some first-time homebuyer programs allow 100 percent financing – that’s right, zero down payment.
For down payments of less than 20%, mortgage insurance (MI) will be required and associated costs will apply.
If you can demonstrate that the problem is in the past, and you have been able to re-establish a good track record for a sufficient amount of time, you should still be in a good position to get a mortgage loan. There may be a reasonable explanation, so speak to your lender honestly and openly about the situation. It’s important to remember that lenders don’t just look at your past history, but also at your ability and willingness to pay in the future.
Sometimes, you may not be ready to buy a home. Doing so may only compound your problems. If you don’t qualify for the loan you want today, work with us to address the issues that have kept you from getting your loan approved. With a little help, you may be just a few months away from getting that new home.
The old rule of thumb was at least 2%, but this is no longer the case. Many different individual factors need to be analyzed to determine if refinancing is right for you, such as the length of time you intend to stay in your home, or the type of loan you currently hold. We are always happy to provide a recommendation to you for your particular circumstances, and if you have any questions at all feel free to call me at (310) 798-6018.