Expect the Unexpected

According to a 2019 survey conducted by The Harris Poll for NerdWallet, over a third of recent first-time buyers wish someone had given them more information about how to decide how much money to expend to get into a mortgage.

Commonly, most people want to maximize a home’s down payment in the interest of reducing a monthly payment. The best reason in my opinion to put down a large down payment would be to avoid having to pay for mortgage insurance. However, having a mortgage advisor calculate the different scenarios involving different down payments along with varying options available to you in obtaining a home loan could make a difference in how prepared you are for the little emergencies like a car breakdown after moving into your new home.

As you are beginning the process of deciding which home loan is best for you while also inspecting the home you’ve chosen, you may identify some items that you might want to agree to fix after you move-in in return for something the seller is willing to pay on your behalf. Calculating how different down payments affect your mortgage payment can be surprising to many people. Also having an understanding of what’s negotiable can help you have a sense of getting a better value.

Figuring out the right down payment involves balancing putting down a higher initial payment with the ability to have money for urgent improvements, life’s emergencies, and enjoying life in your new home. Talking through all of the scenarios can take a lot of stress out of the process. It’s always possible to make extra house payments or pay extra principle payments once you are in a loan.

You have many options in regard to down payments in today’s mortgage products. It’s a privilege to live and serve in the Greater Clark County area as your neighbor and mortgage advisor. Be sure that you are in the two-thirds of new homeowners who feel confident in your choices for a home mortgage, talk to your local mortgage adviser.

Please call or email me with your questions at MPattullo@PeakMtg.com

We lend where we live,

Mike