The first step to buying a home in Orange County is finding out how much money you will need to put down on a home, but the reality is that the down payment that you need to pay is different that the next home buyer.
To help answer “How much Do I Need To Put Down On A House?” we’ve compiled the basics that you need to know before step foot in the bank to consult with your lender about a mortgage loan.
What’s The Average Down Payment?
In 2014 the average down payment for a home is 16 percent of the home’s value but depending on various factors, you can expect to be pay as little as 3.5 percent for the down payment on a home.
With down payments it’s important to remember that the more money you put down means that you will have a lower mortgage payment and you will be able to pay off your home sooner.
Where Should Your Credit Be?
Since the Real Estate collapse in 2008, lenders have been tightening their criteria. This year lenders have been looking for higher credit scores that range from 660 to 700, so if you’re not aware of what your credit score is you should pull your credit reports at least three months in advance so you can correct any false information that’s being reported about you and pay off any longstanding debts.
Help And Hope Is Available
Let’s say you have a low income, no money for a down payment and good credit but you still want to get into a house. Help is available in the form of loan programs through the Department of Housing and Urban Development since they do offer down payment assistance for low income families and you may be able to receive up to $5,000 in down payment assistance. California also has a similar down payment assistance program through the California Housing Finance Agency.
For more information on how much money you need to put down on a home, or to view the latest Orange County homes for sale, contact Fred Sed & Associates today by calling us for a free, no hassle Real Estate consultation at (949) 272-0125.