Purchasing a home for the first time is a major financial milestone. Along the way, you're bound to have questions. How much money will I need to put down? How will my down payment affect my mortgage payments? All great questions and fortunately, there are many options and choices for every kind of homebuyer.
If you haven't begun putting money aside for a down payment, it’s time to examine your options for saving
. One of the most common and effective methods is to set up automatic transfers from your bank account or your paycheck to a separate savings account. These transfers can be based on a percentage of your paycheck or a specific dollar amount each month. For example, if you need to save $10,000 you could set up monthly transfers until you reach your goal. Then, when you’re ready to buy a house, transfer that $10,000 out of your savings account.
There’s a lot of conflicting information about how much is required for a down payment on a home, as it can vary depending on the housing market in your area. By working with an experienced loan specialist at UHCU, you will be able to gain relevant information and guidance on what to expect for a down payment.
There are multiple types of loans that can be appealing to first-time homebuyers. A UHCU Real Estate Loan Specialist will provide options and help you determine the best loan for your situation. There are also some programs that set standards for the home or condo, including a maximum price and the condition of the home.
An example of a type of loan UHCU offers is Conventional mortgages, which are the most popular loan option, and consistently make up over 70% of new home sales. At UHCU, through our first time homebuyer program, our conventional loans can have down payments as low as 3%.
Purchasing a home for the first time can seem intimidating, but by understanding the details and working with a team you trust it doesn’t have to be. At UHCU we will be with you every step of the way.
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