We all know that buying a home is a significant decision that comes with a great deal of financial planning and preparation. However, few of us are taught the ins and outs of actually obtaining a mortgage to make your dream of homeownership come true.

Mortgages are a complicated business that is always changing, both with fluctuations in market rates and with policy decisions.

But, if you’re hoping to buy a home in the near future, it’s important to understand all of your options when it comes to mortgages.

In today’s post, we’re going to address the 20% down payment myth, where that number comes from, and what your options are when it comes to applying for a mortgage.

Where does the 20% down payment number come from?

For most people, 20% of a house is a serious amount of money that would take years to save up. If you’re a first-time homebuyer and don’t have any equity to use from selling another house, 20% may seem like an impossible amount to save within the time you want to buy a home. Fortunately, there are several ways to buy a home without having 20% in cash saved up.

But first, let’s understand where that number comes from.

Most mortgage lenders will want to ensure that lending to you is a safe investment of their money. They want to know that they’ll earn back what they’re spending. To do this, they use several methods.

First, they’ll check your credit history to see how often you pay your bills in time. Then, they’ll want proof if your income and financial stability. Finally, they’ll ask for either a down payment or a guarantee that you will pay them back. Here’s where that 20% comes in.

If you don’t have 20% of the mortgage amount saved for a down payment, you will typically have to pay something called private mortgage insurance. This is an extra monthly fee, on top of your mortgage payments with interest, that you pay to ensure the lender that they’re seeing a return on their investment.

Most homeowners put much less than 20% down

If you’re feeling bad about the amount of money you have saved for a down payment, don’t be! In fact, most first-time homebuyers put, on average, just 6% down on their first home.

Since first-time homeowners don’t have the benefit of equity they’ve accumulated by making payments on their previous mortgage, they often have to come up with down payments out of pocket.

Other options besides a 20% down payment

There are several ways to secure a mortgage without putting 20% down on the home. First, check to see if you are eligible for any loans that are guaranteed by the government. These can come from the Department of Veterans Affairs (VA), or the USDA single-family home program.

The third option is to take on private mortgage insurance until you’ve paid 20% of your mortgage payment.

Private mortgage insurance can be paid to an insurance company or to the federal government in the case of FHA loans, you can put down as low as 3.5%.

Between these three options, you should be able to find a mortgage that you can afford and one that will give you the best possible financial stability in the long-term.

Regardless of whether you’re buying or selling a home, it is important to keep your house looking great at all times. By doing so, you’ll be able to boost your home’s appearance and maintain or increase your house’s value for years to come.

A professional cleaning service remains a popular choice for homeowners, as this service makes it easy for homeowners to enhance the quality and appearance of a residence. Finding the right home cleaning service, however, may seem like an uphill climb, particularly for homeowners who are searching for a professional cleaning service for the first time.

Lucky for you, we’re here to take the guesswork out of finding the right home cleaning service – here are three tips to streamline the process of discovering the ideal professional cleaning service.

1. Ask Friends and Family Members for Help

Friends and family members serve as valuable resources, especially if you’re searching for a home cleaning service. These loved ones may be able to offer recommendations based on their past professional cleaning service experiences, ensuring you can find a terrific home cleaning service in no time at all.

Ask friends and family members about their past home cleaning service experiences. This may allow you to find a trusted professional cleaning service, one that can help you transform your ordinary residence into a dazzling one.

2. Browse Customer Reviews

Professional cleaning services are readily available nationwide, so how can you differentiate a great home cleaning service from a mediocre one? Customer reviews, of course!

Yelp, Angie’s List and other home service review websites can help you take the guesswork out of finding a professional cleaning service. These websites publish positive and negative home cleaning service reviews from customers, ensuring you can gain insights into various professional cleaning services that you may struggle to obtain elsewhere.

Spend some time browsing customer reviews online – you’ll be glad you did! If you explore customer feedback from across the web, you can better understand what separates a wonderful professional cleaning service from a subpar one.

3. Get Support from a Real Estate Agent

Real estate agents offer expert tips and guidance to homebuyers and home sellers alike. As such, they understand the best home cleaning services in numerous cities and towns and are happy to help you discover the perfect professional cleaning service.

Furthermore, real estate agents may be able to help you find a home cleaning service that fits your schedule and budget. These agents understand that is paramount to employ a professional cleaning service that is available at dates, times and prices that work for you. Thus, real estate professionals will go above and beyond the call of duty to help you discover the right home cleaning service at any time.

A home cleaning service ensures you can eliminate dust, debris and odors from your residence. And if you dedicate the necessary time and resources to hire a professional cleaning service today, you can minimize such problems both now and in the future.

Tagged with:
 
Set your Twitter account name in your settings to use the TwitterBar Section.