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Purchasing A New Home?

Whether it's your first or fifth, we sincerely believe this should be an exciting & happy time, and we'll be by your side to make sure that happens!
Limitless possibilities create

Payment Comfort Level

How much you decide to put down should be carefully evaluated on a basis of how much you personally can afford.

Although you may qualify for a higher mortgage payment, you may, realistically, be able to afford less.

If that’s the case, we’ll work with you to lower the loan amount, whether that’s by increasing the down payment or finding a less expensive property.  Together we will figure out what’s best for you.  

Benefits of Getting Pre-Approved

Get Pre-Approved

Getting Pre-Approved is a vital first step in purchasing a new home.

Get Fully Underwritten

With ESCO, you'll get fully underwritten within a few days.

Negotiating Power

Gain negotiating power when you work with our Mortgage Advisor purchase specialist.

Down Payment Options

The “Down Payment Requirements” touches the minimum down payment needed for conventional loans (Fannie Mae & Freddie Mac), as well as some of the available alternatives with non-conventional (FHA & Portfolio loans) programs.

For example, you can purchase a single family home or condominium with as little as 3.0% down payment.  But there is a price for lower down payment:  mortgage insurance (often called PMI, aka private mortgage insurance).  

Private Mortgage Insurance

Private Mortgage Insurance (PMI) is required when the loan amount is more than 80% of the purchase price.  The lower the down payment the higher the mortgage insurance premium charged

Benefits of Lower Down Payments

You can still be a homeowner

High or low down payment, you're still able to become a homeowner.

Increased liquidity

Once you have a home, you've increased your liquidity.

Higher rate of return

Your property's appreciation will be the same whether you put 1%, 3%, 5%, or 20% down payment.

Opportunity Cost

The smart investor can make money from available cash by placing it in other investments.

Cost of Lower Down Payments

Higher Interest Rates

Whether you are using a conforming loan or a non-conforming loan program, you will need to pay higher interest rates.

Increased liquidity

A lower down payment means higher mortgage insurance. But mortgage insurance can be removed once sufficient equity is produced.

Higher Monthly Payments

A related burden of lower down payments is obviously higher loan amounts, which translates into higher monthly payments.

Paying Interest

During the first few years of a mortgage loan, the bulk of your monthly payments are for interest, which is normally tax deductible.