Calculating your down payment
So you’ve settled on a desirable property in a comfortable price range. Now you need to determine the source of the down payment. Based on the financing options available, down payments can range from zero to 20 percent. Typically, however, most down payments for first-time buyers are in the 3-to-5 percent range.
As a rule, first-time buyers qualify for the loan, but some require assistance with the down payment. In other cases, buyers have the resources for the down payment, but wish to preserve the ready cash for other purposes.
Down payment options
Banks and mortgage lenders have a variety of plans available to assist with down payment options. Some allow a gift from a parent or relative. Some minimize the down payment and closing costs to attract first-time buyers. Others agree to waive some portion, or agree to roll these into the terms of the loan. Put simply, banks and lenders want to get the deal done. They will often go to great lengths to assist in your property purchase, provided you are a favorable risk. An agent at Bradford Real Estate can recommend a lender and program that will best fit your needs.