DON'T LET THE DOWN PAYMENT STOP YOU BEFORE YOU START
One of the biggest misconceptions I hear from potential buyers is that they need a huge amount of money saved before they can even think about purchasing a home.
That isn't always the case.
Depending on your finances, loan type, location and eligibility, there may be programs available that can help with some of the upfront costs of buying a home.
WHAT IS DOWN PAYMENT ASSISTANCE?
Down payment assistance, often called DPA, refers to programs designed to help eligible home buyers cover some of the money needed upfront.
Assistance may come in different forms, including grants, forgivable loans, deferred-payment loans or other programs.
Every program is different, so it's important to understand the requirements before assuming you qualify.
IT'S NOT JUST FOR FIRST-TIME BUYERS
A lot of people hear “down payment assistance” and immediately think it's only available to someone purchasing their very first home.
That's not always true.
Some programs define a first-time buyer as someone who hasn't owned a primary residence within a certain period, while other programs may have completely different eligibility requirements.
That's why it's worth checking instead of automatically counting yourself out.
HOW MUCH MONEY DO YOU ACTUALLY NEED?
Your down payment isn't the only expense to plan for.
Depending on the transaction, you may also need money for things such as:
* Earnest money
* Home inspection
* Appraisal
* Closing costs and prepaid expenses
* Moving expenses
* Initial repairs or purchases after closing
Part of preparing to buy is looking at the whole picture, not just the down payment.
YOUR LOAN AND ASSISTANCE PROGRAM HAVE TO WORK TOGETHER
Not every assistance program works with every mortgage.
Your lender can help determine which programs may work with FHA, conventional, VA or other financing based on your specific situation.
This is also why I recommend talking with a lender **before** falling in love with a house.
WHAT IF YOU DON'T QUALIFY RIGHT NOW?
Then we build a plan.
Maybe you need to save a little more. Maybe credit needs some work. Maybe paying down a balance could improve your buying power.
Finding out you're not ready today doesn't mean homeownership is off the table.
It simply gives us a starting point.
THINKING ABOUT BUYING A HOME IN MISSOURI?
You don't have to figure everything out before contacting a REALTOR®.
If you're wondering what you can afford, how much you should save or what your first step should be, we can start there.
Micadez Favors, REALTOR® | MRP
EXIT Elite Realty
Let me do you a Favor.
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