Making A Down Payment For A Home Loan

new homeowners buying a homeWhat stands between you and becoming a homeowner? For those who want to buy a residence but do not have a property to sell, the idea of making a down payment can be intimidating. These payments vary in size, and you may be able to secure the loan you need for the home you want with less than you realize. With that said, making the right initial payment will help bring down the overall size of your mortgage, something that helps you make your monthly payments more manageable.

FHL Texas provides important guidance on mortgage matters for people interested buying a home in Texas. We can work closely with you at the beginning of the mortgage process. That means providing guidance on what kind of loan might be right for you, helping you determine what your down payment should be, and assisting in securing a pre-approval. We actually offer no-cost pre-approvals, which makes it easier for buyers to make successful offers on properties that excite them!

Down Payments And Home Purchases

While a mortgage covers much of the cost of a home, borrowers are expected to provide a down payment to receive their loan. This can feel like a significant barrier for some, especially those who are not selling a home before making their purchase. If you do not have the earnings from a home sale to help with your payment, it can take time and smart budgeting to accumulate what you need to move forward with receiving a mortgage. What may surprise you is how a relatively small down payment can be all that you need to receive your loan. This can be a welcome benefit to many, though you may find that upon consideration you want to pay something larger in order to reduce the size of your mortgage.

Can I Secure A Mortgage With A Lower Down Payment?

With both government-backed FHA loans and conventional loans (non-government loans provided by Freddie Mac and Fannie Mae), borrowers can secure the funds they need with smaller down payments. An FHA loan can be secured with a down payment as small as 3.5% of the mortgage, while a conventional loan can be secured with a payment as small as 3%. Because these options are available, people who do not have home sales to assist with down payments find it easier to secure loans and make purchases on homes. Does this mean you should choose the lowest possible down payment? Handing over less money to secure your loan can have its appeal, but you may find that you benefit more from a larger down payment that reduces the overall size of your mortgage. Part of our guidance includes support in assessing what approach is right for you based on your immediate and long term needs.

Making A Down Payment As A First Time Home Buyer

First time buyers can face several challenges when they enter the housing market. Simply put, you enter without the direct experience of buying and selling, which can put you at a disadvantage. Buying can feel intimidating—you may be unsure of whether the market is friendlier to buyers or sellers, as well as what current and future interest rate changes might do to affect your plans. You also lack the money from a recent home sale to help with your purchase, which means you are dependent on savings and earnings to make your down payment. The option to make a lower down payment can help you. It can also help to secure pre-approval for a loan, which means a bank will provide assurance that you can receive the loan you need for a property that you desire.

Are You Ready To Receive Approval For A Mortgage? We Provide No-Cost Pre-Approvals

We help potential home buyers in many ways. Our knowledge of the housing market and mortgage matters can help you move forward with a purchase with more confidence. Our ability to provide no-cost pre-approvals can help you by making your offer more appealing to a seller. With a pre-approval, you will not have to worry about skepticism or concern over the offer that you put forward. When you reach out to us, we can talk to you about what securing yours will require and how doing so will help you.

The Long Term Benefits Of Committing To A Home Purchase

When you successfully purchase a home and stop renting, you can improve on your financial standing in several important ways. One benefit comes from the stability of your mortgage. Rent prices continue to rise, which means not owning the space where you live will come with costs that keep escalating. With your mortgage, you can lock in a monthly payment that is stable. You can even make changes in the future by refinancing and bringing that payment down! Another benefit to buying is that your monthly payments will build your equity, which is important for helping you grow your net worth and improving your financial options in the future.

Bring Your Questions About Down Payments And Mortgage Options To FHL Texas!

By securing the mortgage you need and paying for a home, you can enjoy a better living space and benefit from exciting long-term financial benefits. We can answer your questions about down payments and other matters related to securing a loan, and we can assist you throughout the process to help you purchase the property that you desire. If you would like to find out more, contact FHL Texas today at 1-800-990-LEND (5363).