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.