Down Payment
Down Payment. It is something that we have all heard of in the home buying process. What is it and how does it work?
The common misconception is that you need 20% down in order to purchase a house. That said, according to the National Association of Realtors article from January of 2022, the average first time home buyers pay about 6% of the home price for their down payment, while repeat buyers put down 13%. The article also mentions that these numbers for repeat buyers have been higher in recent years due to the increase in equity in current home values. So when people are looking to sell they are taking a good chunk of the proceeds and putting it towards a new home and values we as high as 17% down in the recent years according to NAR.
Throughout my career, I have seen many different options for people to put money down. I have seen gift letters, where the buyers receive a gift from someone that there will not be a repayment on and I have seen traditional down payments where people save to purchase. I’ve also seen people use Crypto profits to purchase, or 401K’s to purchase as well. Plus, there are also other options, such as down payment assistance programs through the city, county or state that are available too that my clients have used.
If you are thinking about purchasing a home or selling your home to move up or move down and purchase a new one, there are so many options to help you get there. The first step is always talking to a mortgage lender to understand your situation better (unless you purchase in cash). They will be able to look at your earnings, debts and credit in order to help determine the best options for you. If you do have things that need fixed on your credit, they can help to guide you to get you to the finish line of purchasing a home. I have several wonderful lenders that I work with that I love to recommend. So if you or someone you know is thinking of moving this year, don’t hesitate to reach out!
If you have any other questions, simply contact me via email to nicole@nicolemilford.com or call me at 630-251-3082!
#nwirealtor #nwirealestate #nwindiana #nwindianarealtor #nwindianarealestate #nwindianahomes #firsttimehomebuyer #buyers #downpayment #realtor #realestate #buyingahome #buythehome #homepurchase #cedarlakeindiana #cedarlakerealtor #crownpointindiana #crownpointrealtor #stjohnindiana #stjohnrealtor
