Are you well informed about the down payment needed to purchase your next home?
It is likely you are going to need some money for a down payment. The programs which offer 0% Down are slim and selective so it best to begin preparing early on for any out-of-pocket expense. The amount of down payment necessary depends upon the kind of loan you get. FHA loans can require as little as 3-5% down, when Private Mortgage Insurance (PMI) is used. However, there are many loan types available with varying minimum down payment requirements. Your mortgage broker can give you a better idea of the specific loan programs that would be appropriate for your specific needs.
A second factor to consider is the source of your down payment. You may be able to negotiate with the seller to help pay closing costs. Relatives may also be a good source of funds for a down payment. You should also consider year-end bonuses, additional savings and tax refunds as sources for your down payment.
If you are relying on the sale of an existing residence for the down payment on your new home, I can calculate an estimated "Seller's Net" for you. A "Seller's Net" is the expected proceeds from the sale of an existing residence after loan pay off and closing costs- it's your "out the door" amount. Some of the information such as the mortgage payoff amount will be known. Other information, such as the expected sale price and other closing costs, can be estimated. I'll just need your property address and your loan payoff amount to start. Let me know if this is something I can help you with!
When planning for your down payment, the best thing to do is to contact your mortgage professional to get an individual analysis of your mortgage options BEFORE making any major changes to your financial situation and at the beginning of your property search. It's also important to remember that "Down Payment" IS NOT the same as "Closing Costs" which can also be estimated by your loan officer upon Pre-Qualification. My team has several great Lenders I can refer to you. Those recommendations can be found at www.LeannaRealty.com/vendors/
Remember, when you work with Leanna and The MOSS Team at DRC, you will always have access to a resourceful network of professionals ready to help you face any challenges and ultimately reach your unique real estate goals!