If you’re renting an apartment, house, condo, or townhome have you ever considered how much money you’re giving to your landlord? As long as they’re running a profitable business you’re putting money into their pocket that you could be keeping for yourself.
In this video I take a look at one of the most common concerns I come across when working with first time home buyers, the down payment.
Most people think you need 20% down to buy a home, which isn’t always the case. Your average three bedroom home in the Twin Cities market in January 2018 was $261,867 but lets call it $260,000. Now 20% of that is a lot of money but if we look at a lower down payment option like 3% to 5% that’s only $7,800 which is a lot more affordable. The closing costs are typically 3% of the purchase price, which in this case would be another $7,800 bringing us to a total of $15,600 needed to close. Now what if I told you there are down payment assistance programs that allow for loans to be used towards the down payment for up to 5% of the purchase price? In this case that would be $13,000. If we take our $15,600 needed to close and back out our $13,000 down payment assistance loan it brings us to $2,600. Only $2,600 up front in order to close a $260,000 home. This makes home buying super affordable!
So before you go and sign that next lease give me a call, let’s take a look at your options, and get you into a home for a very affordable amount!