EXCLUSIVE: You only need 3% – not 20% for down payment, expert tells first-time home buyers

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For the first-time home buyer, it can be difficult to find the mortgage that fits your budget. The issue of capital can be a significant obstacle to mastering the courage needed to take the first step towards owning a home.

Many first-time homebuyers have gone out of their way to save 20% down on their dream of home ownership. This sum, to some extent, has hindered the journey of many people towards the realization of this dream.

As U.S. home prices continue to soar with prices beyond the reach of many homebuyers — especially first-time buyers — the challenge of finding a 20% mortgage down payment can be extremely difficult. Waiting to save such a down payment could mean missing out on the ideal home.

But in most cases, the 20% down payment requirement might be more of a myth than what is actually necessary.

No need for a 20% deposit?

Katie Barish, Executive Vice President (EVP) of Procurement at Rocket Mortgagea subsidiary of RocketCos. Inc. RKT expressed dismay that many first-time home buyers believe they need a 20% down payment.

“When you’re preparing to buy a house, you want to save not only for the maintenance costs of owning a house, but obviously there’s a down payment,” Barish told Benzinga. “There is always a down payment. Now, what a lot of people believe, and I’m still shocked at how many people believe this, is that you have to have 20% down payment when you buy a house. You don’t need to have a 20% down payment in most situations.

The down payment amount depends on the type of home you’re buying or if it’s an investment property, but most of the time a 20% down payment isn’t required, Barish said.

Talk to a professional

Barish recommends talking to a mortgage professional to help you keep your money in your pocket, especially if you’re a first-time buyer.

“You want to keep as much money in your pocket as possible so you’re prepared for those hidden expenses, she said. “You don’t want to be caught off guard when something breaks – because something will break.”

Rocket Mortgage is the nation’s largest mortgage lender and helps millions of people realize their dream of home ownership. He revolutionized the industry with the world’s first completely online mortgage experience. and quick access to customer service could set Rocket Mortgage apart from other lenders.

Dan Gilbert founded the company that would become Rocket Mortgage in 1985 – the name was amended at Rocket Mortgage in 2021 with the goal of creating a place that would make getting a mortgage a little easier. The company’s goal is to help customers find the perfect home, and its service doesn’t stop once the transaction is complete.

Barish urged first-time home buyers to work with a mortgage professional to ensure they are pre-approved before they start looking at homes and become emotionally attached to them.

“You want to know that you can actually afford to buy the house,” Barish said. “It’s just putting yourself in the right place emotionally, and it’s putting yourself in a position where you can act in a competitive market to make an offer right away.”

Full Service Home Buying Experience

Barish assured clients that Rocket Mortgage would not leave them hanging in the process of acquiring the perfect home.

“We believe in ease of process and transparency. You need to know where you are in this process from start to finish. If you have questions, you need to be able to answer them quickly.

“We can help you find the perfect home; we can help connect you with a real estate agent through sister company Rocket Homes. We can help you with the mortgage when you close your loan. Chances are you are serviced by Rocket Mortgage, so we can help you after you close, too. And then you have access to a wide variety of partnerships. Sister company Rocket Auto can help you if you want to buy a car, and sister company Rocket Loans can help you with a personal loan. Rocket can help you with everything in between all of life’s moments.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investment advice.

About Matthew R. Dailey

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