Since performance bonuses and profit-sharing payments aren’t guaranteed, it’s risky to account for them in your day-to-day or month-to-month budgets anyway. That’s like counting your chickens before they hatch. If you don’t make plans for your bonuses or profit shares before you know you’ll get them, you won’t miss them. Actually, you’ll be grateful for them as they slowly but steadily grow your down payment fund.
Buyers are also taking advantage of two Fannie Mae offer loans; Conventional 97 and HomeReady mortgages, which both allow for a minimum down payment of just 3 percent. HomeReady mortgages are designed for creditworthy, low-to moderate-income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities. Conventional 97 mortgages are designed to help creditworthy home buyers who would otherwise qualify for a mortgage but may not have the resources for a larger down payment.
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Because repeat buyers can often put some of the money from their previous home sale towards their down payment, they’re more likely than first-time buyers to put down larger lump sums. First-time buyers, however, are more likely to put down between 3 and 9 percent. According to a Zillow survey, only 37 percent of first-time buyers pay 20 percent or more.
However, the devil is in the details. You have to pay back your 401k loans, with interest – typically at 2% above the prime rate. On larger loans, that means several years’ worth of three-figure monthly payments and several thousand in interest charges. Plus, if you take out a 401k loan before applying for a mortgage loan, your credit utilization ratio will spike, which could raise your mortgage loan’s interest rate or cause the bank to think twice about lending to you in the first place.

Your house might be the single biggest purchase you ever make, but it won’t be the only big-ticket item you ever buy. Unless you can comfortably live without a car, you’re likely to buy a new or used vehicle every few years. If you have kids, you’ll need to budget for their education. Once you’re ensconced in your home, you’ll probably want to make sensible improvements that enhance its value or accommodate your growing family. And, all the while, you need to have enough set aside for the unexpected.
Beautifully-maintained LIGHT & BRIGHT Contemporary-style Condo right in the heart of coveted Brentwood. Enjoy the spacious, open Living Room w/ high ceilings & a cozy fireplace. The remodeled Kitchen opens to the Living Room & is equipped w/ stainless steel appliances & granite countertops. Features engineered hardwood floors throughout, recessed lighting, new lighting fixtures, crown molding, central A/C, in-unit laundry w/ new front-loading washer/dryer, double pane windows & a guest bath. Recently remodeled Bathrooms include Quartz countertops & sleek floor tiles. Provides the most ideal layout w/ both ensuite Bedrooms at opposite ends of the unit. Boasts THREE Northwest-facing balconies
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Since performance bonuses and profit-sharing payments aren’t guaranteed, it’s risky to account for them in your day-to-day or month-to-month budgets anyway. That’s like counting your chickens before they hatch. If you don’t make plans for your bonuses or profit shares before you know you’ll get them, you won’t miss them. Actually, you’ll be grateful for them as they slowly but steadily grow your down payment fund.
Your credit reports are an ongoing record of how you've managed your finances. You should know exactly what they say about your financial history before you apply for a mortgage. These reports and your credit score play an important role in the loan approval process, and they also determine your interest rate and other loan terms that lenders will offer you.
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