MINT HILL, NC – The most common statement that we hear on a daily basis is: I do not have enough saved to purchase a home. Well, we are here today to debunk that myth! There is a common misconception that one needs 10% or 20% of the purchase price to purchase a home. In actuality, there are plenty of programs that require no down payments (0%) for first-time homebuyers, “move-up buyers,” veterans, and even individuals buying outside of the city limits (USDA). In addition to these programs, there are more standard options to purchase a home with putting as little as 3.5% – 5% as a down payment, carrying no income or location limits.
This leads to closing costs. Closing costs are the cost one pays associated with purchasing a home. Expected items to pay during a home purchase would be an appraisal, settlement fees, title work, insurance, property taxes, etc. Many times these costs will come out to being approximately 1.5%-2% of the purchase price. The great thing is these costs can be negotiated between a buyer and seller as to who pays for them! It is not standard on all transactions, but it is possible to have a seller pay for some and/or all of the closing costs, if agreed upon. Therefore, pending qualifications, you could qualify to purchase a home with little to no money down.
As always if this leads to any questions in regards to mortgages, feel free to call, text, or email me (704-430-6138 – firstname.lastname@example.org) anytime!
Look forward to discussing more mortgage tips/tricks next week!