201905.09
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Creative Down Payments

The big news in the last few years has been that many 20 and 30 somethings have a different priority and value system when it comes to home ownership than their parents had.    Low and Behold, home ownership has moved up the Millennial priority list!  There is a shift of attitude happening statistically and the first time home buyer market is heating up.   Think . . . competitive bidding, low inventory, short time on market for sellers with homes to sell in an “accessible” price range.

Sellers – make sure you have already researched and starting locking down  your next address set up before you list!    Or keep the panic medication handy just in case you get a quick sale and closing on your home!

Buyers – don’t lose heart if the first offer is not successful.  Let the competition motivate you to be stronger and quicker with your next offer.    And one factor which may affect your desirability as a buyer in a competitive bidding environment is your sourcing and reliability of your down payment.     If you are already pre-qualified for a low down payment loan like an FHA mortgage, and you know the maximum loan amount that you qualify to borrow, make offers on homes that leave you a little room to raise your bid if you really love a prospective home.    Your loan qualification and your loan amount will depend greatly on your underwriter being able to verify your down payment funds and source.

This  article in Mortgage News Daily may help you expand your thinking and understanding about down payments.  Well worth reading for any new or aspiring home buyer.    A “down payment” is so much more than just the verifiable balance in your savings account!   On the other hand, there are lines you do not want to cross when it comes to sources of down payments.    What you don’t know can hurt you!

Our law practice helps buyers safely and legally document many types of purchase transactions.  Also, an experienced and resourceful lender can help you find the right loan to fit your situation in life.  We have a solid list of lender referrals for every type of loan program.   The internet is a neutral partner in this adventure.   Make sure you also have a team that is on your side and in your corner when you begin the home ownership quest!