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How much down payment do I need to buy a house?

January 16, 2016 by Eric Lowry

How much down payment do I need to buy a house?

Many Americans are unclear on how much of a down payment they need in order to buy a home. Misinformation about down payment requirements is one of the biggest reasons why more people don’t even consider buying a home. They simply don’t think that they can.

In a recent study done by Fannie Mae, 40% of Americans “Don’t Know” how much down payment is required to buy a home, while another 15% think you need at least 20%. A further 21% think you need at least 10%. That’s 76% of people who are misinformed about their ability to buy a home.

You may be wondering what the actual amount of down payment needed to buy a home is. The answer is that it depends on the type of loan you want to get.

The accompanying chart illustrates the average down payment amount that buyers put down based on loan type. For all loans across the board, the average down payment is 21% of purchase price. For a Conventional Loan, the average is quite high at 31%, but can go as low as 3%. VA Loans, which are known for the option of putting 0% down, average at 2%. FHA loans allow as low as 3.5% down, however the average falls around 4%.

The actual amount required for a down payment to buy a home is significantly lower than most people realize. Don’t let a common misconception keep you from buying your dream home.

Contact The Lowry Team to evaluate your ability to purchase your dream home. 513-874-1830

The Lowry Team – Keller Williams Realty is an award winning, full service real estate firm specializing in West Chester, Liberty Township, Mason, Monroe and the Northern Suburbs of Cincinnati. The Lowry Team is “Different By Design”… taking a team approach to home buying and selling. The Lowry Team consists of members that are focused on areas of specialization including Listing Specialists, Buyer Specialists, Transaction/Listing Coordinator, Inside Sales Associate and a Marketing Director.

Don’t Hire an Agent…Hire a Team. The Lowry Team.

Buyers and Sellers can reach The Lowry Team Keller Williams at 513-874-1830.

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Search the entire Cincinnati MLS for Homes For Sale

What credit score is needed to buy a home?

December 28, 2015 by Eric Lowry

Research shows that many Americans are not clear about what it really takes to qualify to buy a home in today’s market. There is a significant population not looking to purchase a home simply because they don’t believe they can qualify for a mortgage. One major misconception affecting this is regarding what credit score is needed to buy a home.

A recent Ipsos survey reported that two-thirds of respondents believe they would need a very good credit score to buy a home, with 45% thinking that a “very good” credit score is over 780. In reality, however, the actual FICO score requirement is much lower and has been dropping steadily over the last several months. The average FICO score required depends on which type of loan you get. For an FHA mortgage, the average FICO score is 687. For a Convetional mortgage, the average FICO score is 754.

Contact us today to evaluate your ability to purchase your dream home, you might be surprised at how much the requirements for a mortgage have eased.

Don’t Hire an Agent…Hire a Team. The Lowry Team.

Buyers and Sellers can reach The Lowry Team Keller Williams at 513-874-1830.

Other Articles You May Be Interested In:

Find Out The Current Market Value Of Your Home

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Buying a Home Step 1: Get Pre Approved

The Value of Being Pre Approved

Buying a Home Step 1: Get Pre Approved

August 10, 2015 by Eric Lowry

Buying a Home Step 1: Get Pre Approved

Thinking of buying your first home? Your first step should be to get pre approved. Not quite sure what a pre approval really is? Read on and find out why it’s SO important…

A pre approval is a dry run of the loan process. A mortgage lender gathers information from you regarding your income, debts, assets, etc. to determine how much home you can afford. The lender will be able to give you a hard number that you are pre approved up to, and will be able to give you a run down of what your monthly payment would look like at each price point. There may also be several different loan types available to you depending on your situation. You may qualify for FHA, VA, USDA or Conventional. A lender will be able to talk you through your options and help you determine which would be the best fit for you.

Getting pre approved not only builds a great foundation of knowledge for starting your home search, but it also provides a great amount of comfort. How are you ever going to feel comfortable making the biggest purchase of your life if you’re not familiar with and comfortable with the numbers first?

Another very important aspect of getting pre approved before going out to look at homes is that it saves you from heartbreak. Imagine you’re out looking at some homes on the weekend with your Realtor and you walk inside one that is just perfect for you. It’s got an awesome kitchen, a finished basement, a great backyard, and whatever else might be on your wish list. You will likely be so excited and thrilled at the possibility of getting this home that you want to get an offer in right away. Sorry, I have some bad news for you. You can’t submit an offer without sending a copy of your pre approval letter with it. You can try to get in touch with a lender to get pre approved, but most likely you won’t be able to until Monday rolls around. And if you have to wait, in today’s market, you won’t get the home. Trust me, that can be absolutely heart breaking and you don’t want that. So when I say it’s in your best interest to get pre approved first, I really mean it.

Stay tuned to find out about step 2!

The Lowry Team – Keller Williams Realty is an award winning, full service real estate firm specializing in West Chester, Liberty Township, Mason, Monroe and the Northern Suburbs of Cincinnati. The Lowry Team’s culture is that of a fun, high energy group who prides themselves on providing personal, professional real estate service.

The Lowry Team is “Different By Design”… taking a team approach to home buying and selling. The Lowry Team consists of members that are focused on areas of specialization including Listing Specialists, Buyer Specialists, Transaction/Listing Coordinator, Inside Sales Associate and a Marketing Director.

Don’t Hire an Agent…Hire a Team. The Lowry Team.

Buyers and Sellers can reach The Lowry Team Keller Williams at 513-874-1830.

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The Lowry Team Keller Williams: Buy A Home With A Low Down Payment

January 16, 2015 by Eric Lowry Leave a Comment

Can You Buy A Home With A Low Down Payment?

Do you think you need 20% down to buy your first home? Think again! According to a recent survey, 2/3 of all buyers put 5% or less down when purchasing a home. That, together with interest rates being at historic lows, means there has never been a better time to buy your first home.

If you are thinking of buying your first home, visit our website at www.LowryTeam.com

There are many advantages of buying a home, financial or otherwise. If you are considering buying your first home you can start your home search here:

Click Here to search the entire Cincinnati MLS for Cincinnati Real Estate for sale.

Buying a home as a first time homebuyer is a complex process, one that a real estate agent specializes in navigating. A real estate agent will advocate for you and your interests throughout the whole process, which makes it important for you to find the agent that will best fit your needs.

The Lowry Team takes a team approach to home buying and selling. The Lowry Team consists of members that are focused on areas of specialization including Listing Specialists, Buyer Specialists, Transaction/Listing Coordinator and a Marketing Director. This ensures that you get more focused attention and your home buying or selling process goes as smoothly as possible.

Contact The Lowry Team of Keller Williams Realty Associate Partners today to get in touch with a real estate specialist.

The Lowry Team is an award winning, full service real estate firm. The Lowry Team’s culture is that of a fun, high energy group who prides themselves on providing, personal, professional real estate service.

Don’t Hire an Agent…Hire a Team. The Lowry Team.

Buyers and Sellers can reach The Lowry Team, Keller Williams at 513-874-1830.

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