Do You Need To Put 20 Percent Down?
Your downpayment amount depends on multiple factors. Watch the video to learn more.
Do you have to put 20% down on a house?
No, you do not have to put 20% down on a house. While it is a common belief that a 20% down payment is necessary, many lenders offer mortgages with lower down payment options. The down payment requirement typically depends on the type of mortgage you are applying for and your credit score. For instance, an FHA loan only requires a 3.5% down payment, and some conventional loans require as little as 3% down. However, keep in mind that a lower down payment typically means a higher monthly mortgage payment and possibly paying private mortgage insurance (PMI) until you have built up sufficient equity in the home.
Questions to ask a realtor when buying
When buying a house, it is important to work with a real estate agent who can help you navigate the process. Here are some questions to ask a realtor when buying:
- What is your experience working with buyers?
- Can you help me find properties that fit my budget and requirements?
- How will you communicate with me throughout the process?
- What is your strategy for negotiating with sellers?
- Can you recommend other professionals, such as home inspectors or mortgage lenders?
Questions to ask seller when buying a house
When buying a house, it is also important to ask the seller some questions to help you make an informed decision. Here are some questions to ask the seller when buying:
- Why are you selling the property?
- Are there any known issues with the property, such as leaks or defects?
- What is included in the sale, such as appliances or fixtures?
- Have there been any recent renovations or updates to the property?
- How long has the property been on the market, and have there been any price reductions?