Today’s mortgage lenders need more proof than ever that a homebuyer is serious and able to afford the purchase of a home. As a result of the mortgage crisis in recent years, those wishing to borrow money will need to come to the table with more than just promises.
Lenders prefer to secure loans for people that can reasonably afford the loan and have the ability to pay it back. For their part, borrowers are typically required to provide a down payment of 20 percent of the home’s price before a loan can be secured. There are certain loan programs that will require less of a down payment amount including many government loan programs but few will require no down payment at all.
It will be important to have a plan to save up a sufficient amount of money for the down payment long before you plan to buy a home. Twenty-percent of the home price is typically a large amount for many people to come up with in a short period of time. Planning ahead will ensure you are making smart choices concerning your mortgage.
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