One of the biggest misconceptions I hear from buyers is, "I'm waiting until I have a 20% down payment."
I completely understand why people believe that. For years, that's what many of us heard. The truth is, while putting 20% down can eliminate private mortgage insurance on many conventional loans, it's no longer the only path to homeownership.
Depending on the loan program, many qualified buyers can purchase a home with as little as 3%, 3.5%, or 5% down. Eligible veterans and active-duty service members may also qualify for a VA loan that often requires no down payment.
For some buyers, there are also down payment assistance programs and grants that may help cover a portion, or even all, of the required down payment if they meet the program's qualifications.
The down payment, however, is only one piece of the puzzle.
When you're planning to purchase a home, it's also important to understand closing costs, prepaid property taxes and insurance, your earnest money deposit, moving expenses, and creating a financial cushion for life after closing.
One of the conversations I have with nearly every buyer is about balance. Just because you're approved to borrow a certain amount doesn't necessarily mean that's the payment you'll feel most comfortable with each month. I want my clients to buy a home confidently while still having savings available for unexpected repairs, furnishings, or simply peace of mind.
The Colorado Springs market has also created opportunities for many buyers that weren't available just a few years ago. Depending on the home and market conditions, seller concessions may help offset eligible closing costs. Combined with an eligible down payment assistance program, buyers can sometimes significantly reduce the amount of cash they need to bring to closing.
Every buyer's situation is different, which is why I encourage people to avoid making assumptions based on what they've heard from friends or read online. A short conversation with a knowledgeable lender can provide clarity about what's possible based on your unique financial picture.
One of the most rewarding parts of my job is watching someone realize that homeownership is much closer than they thought.
If you're considering buying a home in Colorado Springs or the surrounding communities, don't let outdated information keep you from exploring your options. Understanding what's available today may surprise you.
Because at the end of the day, my goal isn't to convince you to buy a home.
My goal is to help you understand your options so you can make a confident decision that's right for you.
