For anyone who has ever bought a home or is considering purchasing a home for the first time, just hearing the words “down payment” is enough to send chills up their spine.
As you have started conducting research about what you can expect as you begin the process of saving and preparing for a home, you have probably stumbled upon information that has filled you with unease as you plan for your future. You’ve most likely read that the down payment you can expect to pay on a home would be around 20 percent of what the sellers are asking for it. That means that if you found your dream home with a price tag of $300,000 on it, you will somehow have to front $60,000 for the down payment alone.
There is some truth to that statistic, but it isn’t your only option. The thought of having to come up with such a significant amount of money at the onset makes continuing to pay rent on your smaller apartment a dream. 20 percent is just the standard, but you can do lower or even higher than that depending on your financial situation.
For a breakdown of each option available to you, read more on David Taran’s professional website.