Why is it so important to a a down payment and reserves saved?
A 20% down payment provides you with a lower monthly payment , no mortgage insurance , and you maintain the equity in your home and stay above water!
Think of it as a right of passage to getting the loan that you want.
There are many programs out there that assist with this. However lenders like to see that you have completely prepared for the occasion and have provided funds of your own.
Gives you a cushion to work with after you get in your home. Lenders like to see 3-5 months of reserves available.
This helps you out tremendously in the even something happens where you may not have the funds on hand to handle the mortgage your reserves will serve as a safety net.
Your reserves should cover
- Mortgage payments
- Home repairs
These are things that you come out of pocket with regularly when you are a home owner