How much money should you put in a down payment if you want to buy your first home?

Similar questions: money put payment buy home.

20% If you can possibly put 20% down on the home, you will avoid paying PMI (Private Mortgage Insurance). This is a fee added to your monthly mortgage payment because they consider anyone putting less than 20% down, a financial risk. Please do NOT get caught in the trap of the Adjustable Rate Mortgage.

Everyone thinks their income will increase enough to cover the rate increase every year. Maybe. A two income family can become a one income family due to pregnancy, illness, anything.

Go for the sure thing...a 30 year fixed rate mortgage. Even if you have to go for a lower priced home for starters, you will probably be moving up within 7 years anyway. The absolutely most important thing to consider when buying a home is LOCATION, LOCATION, LOCATION.

A home in a neighborhood of better homes, even a handy man special, will only increase in value. We always bought the worst house on the street, fixed it up over the years and sold at a good profit. Sources: 22 years a Realtor .

You can have as low as no down payment, but the more you can put, the better. I've heard 20% is good. Buying your first home?

Here’s what you need to know. Making the decision to buy your first home is one of the largest investment decisions you’ll ever make. You are probably excited, but at the same time anxious and may be asking some of these questions: Will I be able to afford the home of my dreams?

Do I have enough money for a down payment? Can I get a home inspected before I make an offer? You are not alone.

Most first time buyers ask these and many other questions, and there are lots of first time home buyers. According to the 2000 National Association of Realtors Profile of Home Buyers and Sellers, first-time homebuyers accounted for 40% of the homes purchased in 1999. The homebuying process can be overwhelming, but if you go into it prepared, your first purchase can be a good experience.

Here are some things to consider before making the plunge. Getting a loan. Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers.To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes.

This will help you feel more confident, and it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller because it shortens the purchase process and there is less of a chance that the buyer will back out of the sale. Call your bank or ask your real estate agent to recommend two or three home loan lenders to you.

Loan payments. The costs involved in the purchase of a home can be especially staggering to first-time buyers. With the help of a real estate agent or lender, you can calculate how much you will be able to pay each month in loan payments.

With that information you can then determine what price range of homes to consider. Down payment. The down payment amount varies depending on the value of the home you choose and the type of loan you obtain.

In some cases, first-time home buyers can purchase a home with no money down. Your real estate professional or loan officer will be able to explain the different loan options available to you. Closing costs.

First-time buyers often forget to consider the closing costs when making an offer on a home. Paying closing fees of up to 10 percent of the home sale amount is not unusual. Add that to the down payment and you'll have quite a sum to raise before the final papers can be signed.

Don’t let this scare you. There are ways to reduce the amount of cash you need. A smart first-time buyer will discuss the options with the agent and lender before making an offer, and will know in advance what costs are to be expected.

Making offers. Don’t feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers.

Make sure you view severalhomes to get a feel for the marketplace. When you do decide which home to make an offer on, work with your real estate agent to get all of your questions answered. But don’t wait too long before making an offer.

The longer you wait, the greater the chance other prospective buyers may place offers on the home. Condition of the home. Buying a "problem" home is another fear of first-timers.

A home that needs major repairs can become a costly venture. And, unless the asking price is adjusted to reflect the hidden repairs needed, chances are the home is not worth as much as the seller is asking for it.To avoid unfortunate surprises, your real estate agent should advise you to hire a home inspector. It is worth the expense to know what you are getting into.

Above all, remember that there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate agent can be an invaluable asset in helping you make educated decisions so that your first home purchase is a rewarding experience.

Sources: http://www.prudentialolympiarealtors.com/articles/b-buying-first-home.html .

As much as you can, but be sure to leave yourself a good cushion of savings for emergencies and repairs, etc. Generally speaking, it is always good to put as much down as you can, because that means you will pay that much less interest, and you will have instant equity. Also, if you put at least 20% down, you should not have to pay for PMI (private mortgage insurance). But here is where it gets tricky.

It really depends on several other things, too. What kind of house are you buying? Is it going to need any immediate repairs and replacements?

What about decorating and furnishing - are you planning on painting or getting anything new when you move in, like carpet, appliances or furniture? You want to make sure you leave yourself some money available for these things. And when you own your own home, there are ALWAYS unexpected costs that come up.

I bought my first house almost three years ago. I decided to go thru a first time home owner program that required no money down, because I knew my house was going to need some repairs and redecorating, and I didn't want to use all the money I had saved and then not have any in case of emergency. Most financial advisors recommend having money in a savings account that could cover at least 3 months of your bills, just in case something came up.

I also made a decision to send an extra amount each month when I make my payment that goes straight to the principle, so that I will pay off my loan sooner. So, it really depends on your personal situation. If you have enough to make a good-sized down payment and still have enough left over for emergencies and the things you want, then pay as much up front as you can.

But if it is a matter of making a large down payment and not having any money left in savings, or making a smaller down payment and still having savings in case of an emergency, then make the smaller down payment and try to pay a little more on your mortgage payment each month. Best of luck to you. Sources: personal experience .

20% is the normal answer... If you put at least 20% down on a home loan, you can avoid having to pay PMI (mortgage insurance) which can lower your monthly payments by a few hundred dollars a month. (That would be 20% of the home's actual value) .

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I want a embroider machine I can do large letter. I want to do a business from home. But don't want to put so much money.

Your credit card payment for the above transaction could not be completed. It's because I don't have money in card?

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Is there an advantage to doing your financial planning at a bank like harris or is it better to go with edward jones or.

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