Tuesday, September 11, 2018 / by Bret Johnson
There is a lot of false information out there regarding the real estate process, and the subject of down payments seems to be particularly misunderstood. And this is exactly why I’d like to share and debunk three common down payment myths for you today.
1. You need to put 20% down. Actually, there are many different lending options available right now. Depending on your circumstances, you could secure a mortgage for little to no money down. The best way to determine what you’re eligible for is to speak to an experienced local lender about these options.
2. Financed offers will never beat cash offers. Assuming your lender has been able to get you fully underwritten and pre-approved, this is not the case. Buyers using financing may still stand a strong chance against cash buyers, so long as they’re sufficiently qualified. Another strategy for beating out cash offers is to play on the seller’s heartstrings by sending them a personal note regarding your feelings about their home.
3. Taking advantage of down payment assistance programs is easy. These programs are certainly well worth it for those who qualify, but it’s important not to underestimate the work they’ll require upfront. Submitting an application and being accepted for these programs is not as simple as some may make it out to be.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.