Buying
a Home with No Money Down
If
you are on the market for a new
home, you may want to look into buying a home with no
money down, otherwise known as 100% financing.
The
benefit of buying a home with no money down is that you will be able to
use the money you normally would use for a down
payment for other things, such as closing
costs, or putting it toward new furniture.
One
of the requirements for buying a home with no money down is having excellent
credit, or, at the very least, next to excellent credit.
Keep
in mind, when borrowing up to 100%
of the value of a home, the lender
may charge you a bit more by bumping up the interest
rate.
The
lender does this because when they approve
a loan for 100% as opposed to 95%, they are taking on more of a risk.
Therefore, they slightly raise the rate.
Remember,
borrowing up to 100% can be very convenient if you simply don’t
have the money for the down payment, and we all know, we pay for convenience.
Because
of the slightly higher interest rate you may run into in this situation,
you may want to consider shopping around for the best
rate and product
to fit your needs and budget.
The
mortgage industry is a highly competitive one, and there are many mortgage
companies out there across the United States that offer programs with
the option to purchase a home with no
money down.
If
you are not interested in doing the shopping around yourself, or simply
just don’t have the time, you may want to consider hiring a broker
to do it for you.
Brokers
have access to hundreds of lenders across the United States, making it
easier to shop a few mortgage companies for you.
It
really wouldn’t hurt to allow one of these brokers to assess your
situation than let them speak with a few lenders to see what kind of deal
they come back to you with. Once they have done this, you can base your
consideration on the best
rate and program they can get you for buying your home with no money
down.
Keep
in mind, mortgage brokers and lenders work on commission,
so finding you a mortgage product and getting it to the table is just
as important to them as it is to you. Best of luck.
Debt
To Income Ratio
Home
Appraisal
Doing
Your Mortgage Homework
Don't
Let Bad Credit Stop You
First
Time Home Buying
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