It’s tax season! For those that that would love to buy a home this year, but haven’t been able to save a down payment, your tax refund could be your golden ticket. If you’re expecting a refund this year, let us show you how realistic homeownership this year could be!
- Save for down payment: One of the biggest barriers to a home purchase is the down payment. Many believe in the stigma: “a 20% down payment is required to purchase a home.” Luckily, that is not the case! Direct Mortgage Loans offers an array of mortgage products with flexible down payment options – as low as 3% with Freddie Mac’s Home Possible Advantage product! This means that on a $200,000 purchase, the down payment would be as little as $6,000.
Down payment assistance funds may also help you achieve homeownership. Statewide down payment assistance programs such as Maryland Mortgage Program (MMP) and local incentives through the city, county, and non-profit can also be used toward the down payment and closing costs.
- Pay for closing cost: In today’s market, homebuyers are typically paying _%-_% in closing costs (see our blog Closing Costs for a breakdown of these fees).
- Lower your interest rate: Interested in lowering your mortgage interest rate to save over time? Discount points are bought to buy down your mortgage interest rate. Each “point” is equal to one percent of the loan amount. For example, if you’re purchasing a $200,000 home, paying one discount point would increase your closing costs by $2,000 – the upfront cost to lower your mortgage interest rate. This might sound pricey, but over time, you may save significantly. Speak with your loan officer during your pre-approval process to weigh the pros and cons of buying points.
The road to homeownership doesn’t have to be complicated. If you’re anticipating the purchase of a new home, contact our team (or download our NEW app) to start your pre-approval process. https://directmortgageloans.com/mobile-app-jeff-dobz/