Buy with 0 down!
Can you afford the monthly payments on your desired home but don’t have the finances for the down payment? Are the rising prices of homes robbing you of the ability to save for a down payment? There is hope! Many types of loans from hundreds of different mortgage companies exist to provide you with a way to purchase a home. One of these programs, zero-down, gives you the option of not paying a down payment. How do you qualify? As with all loans, your credit history, income, and employment all come into play. So, let’s explore zero down loans in more detail to see if this loan program is right for you.The obvious advantage of a zero-down loan is that you do not have to pay the down payment. This equips you to buy the home you desire immediately, while only having to worry about the monthly mortgage payments. The initial qualifications for this loan are a sufficient income and good credit. Younger people and first-time buyers often benefit from this program, which it is geared towards.
Zero down does not mean zero cost though! There are some costs associated with zero down programs, which few people like to tell you about upfront. Generally you have to pay for the loan closing costs, which normally amounts to a few thousand dollars worth of upfront fess. The fees will cover items from title insurance to loan fees. Prior to selecting a loan, be sure to ask the lender what upfront fees you will have to pay, preferably in writing.
There are many benefits to the zero-down program. You will receive full details from your lender, which will then help you identify if this program is ideal for your situation.
Now you know the basics. Here are the next steps to take.
1. Contact me for a list of lenders that offer zero down programs.
2. Contact the lenders to determine who will give you the best deal. To receive the lender’s most competitive rates upfront, tell them you are “shopping around.” This will give them incentive to cut to the chase in order to win your business, which will also save you time and money.
3. Ask each lender about adjustable loan programs. This program allows you to receive a lower rate and refinance six months later to get an even lower rate or to get cash out for property repairs, which will increase your property value. The lender will explain these details more clearly.
4. Have each lender identify how much money you will need to cover loan-closing costs.
5. Choose your lender.