10 Things to Know About Down Payments
Conventional wisdom says you need 20 percent of a home’s selling price to put down in order to purchase it. That's not the case (especially for first-time homebuyers), though it’s still considered a best practices suggestion, if possible. According to the National Association of Realtors, more than 70 percent of first-time homebuyers made down payments of less than 20 percent in the last five years. A total of 54 percent of all buyers made down payments of less than 20 percent. There are a lot of things to know to understand a down payment. Near the top of the list is understanding what a down payment actually means.
What is a Down Payment?
Know How Much You Have to Put Down
Putting 20 Percent Down Lets You Avoid Mortgage Insurance
Understand Inspection Contingencies
Pre-Qualified vs. Pre-Approved: What’s the difference?
Getting Help With Down Payments Requires Extra Steps
Be Prepared for Additional Closing Costs
Know the Perks of Being a First-Time Homebuyer
Learn the Loan-to-Value Ratio
Consider Your Cash Reserves