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You're buying a home. How much money should you put down? I'm going to
give you that answer next.
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When you are purchasing a home, depending on your loan, your loan may
actually direct how much you need to put down; for example, currently
FHA requires that you put 3 1/2 percent down for your purchase. A
typical Conventional Loan requires 20 percent, although I'm seeing
some as low as 10 percent right now. VA Loans are Zero percent down.
Now, on top of your down payment, would be your closing costs.
Depending on your loan and depending on what you might be negotiating
with your mortgage, your average closing costs are anywhere from three
to three and a half percent of the sales price. And that is going to
be on top of however much money you are putting down, based on your
loan. Now, putting more money down may give you a better interest
rate. It may be just what you need in order to make sure you have
proper reserves to continue your mortgage payments once you are in the
home. And also the term of your mortgage, many of them are going to
look at how much reserve you have left. So talk with your mortgage
professional about how much money you'd like to put down, whether that
puts you in a position for success moving forward. If you have
questions about buying or selling real estate in Northern Virginia,
we'd love to hear from you. Give us a call... we've got the answers.