Buying a new home is exciting, but it can also carry with it some anxiety if you’re unfamiliar with the home-buying process. Many of the clients Louise Suchanek sees in Los Angeles and San Bernardino counties are first-time home buyers and come to her because she has a vast knowledge of these areas.
Most homebuyers spend months, or even years, thinking about purchasing a new home and preparing financially for their down payment. However, many are unsure of how much they should be prepared to pay, and mistaking believe that they’ll need to put down 20% to buy a home.
Because she treats all of her clients like family, real estate agent Louise Suchanek carefully explains every step of the home buying experience to each client, including what they can expect to need for their down payment. She has developed relationships with lenders all over Los Angeles and San Bernardino counties and can recommend a trustworthy option to help you understand your financial ability even better.
Simply put, a down payment is cash money home buyers initially pay when they purchase a new home, which increases their buying power and improves their overall loan requirements. The more money you put down upfront, the less interest you will be required to pay over the course of the loan. Additionally, the more money you have to put down, the more your home budget increases.
To determine the percentage of your down payment, calculate the amount you will be paying for your new home divided by the amount of cash you will put down. For example, if your home will cost $500,000 and you put down $50,000, your down payment percentage will be 10% of the home cost.
Chances are you’ve heard that there is a 20% down payment requirement on the purchase of a new home. However, that is simply not true. While 20% may be your down payment goal, it’s not required. In fact, some lenders and loan programs only require 3% down. This flexibility gives more people increased buying power and more choices when searching for a home.
When it comes to deciding upon how much you should put down on your new home, it depends on how much money you’ve set aside in savings and your goals for home buying.
Before you start looking at a home, Louise Suchanek recommends visiting with a lender to find out what kind of buying power you have. A lender will be able to review your credit score, evaluate your finances, and talk to you about your down payment abilities. Once your financial factors have been assessed, your lender will provide you with a letter of pre-approval detailing how much you can spend on a home and what will be required for your down payment.
Louise Suchanek has been a resident of California most of her life and has an intimate knowledge of both Los Angeles and San Bernardino counties. More than that, she understands every aspect of the home buying process and can put you in touch with reliable, trustworthy lenders who can help you understand what you need for a down payment.
If you’re ready to learn more or to start your home buying journey, call Louise Suchanek today at (626) 730-1152.