There are many programs out there that offer 100% financing, with no money down. So you can buy a home with no money to put down on the mortgage.
You can put in the purchase offer that you want the seller to waive tax prorations, or to ask for the seller to pay for the closings costs, and escrows, and pre-paids. This can be from 1 -6% of the purchase price. What that means to you is that you could buy a home with no money out of pocket if you put no money down and asked for sellers to pay for the closing costs.
So the bottom line is it is up to you on how much you want to put down and put towards closing costs.
The more you put down the lower your interest rate. Which could mean you could afford a bigger or more expensive home if you put a sizable amount of money down.
Also is you do not ask for the seller to pay your closing costs you could get the home at a lower price. Remember that the seller is taking those closing costs out of his profit. So if he was going to give you $5000 towards closings costs, you may have been able to buy that home for $5000 less.
It is a trade off. If you do not have money saved and want to buy a home it is possible to buy now. If you have money, or getting money soon, or can save money for down payment and closing costs... you can save yourself money on the interest rate and possibly the price of the home.
Russ Ravary is a licensed real estate agent in the State of Michigan and a Realtor.
Photos, Comp and Listing Information Courtesy of Realcomp II Ltd, Properties shown have been listed and sold by various MLS member REALTOR® agents.
I do not guarantee or warrantee any of the above information. Please feel free to verify any of the facts. I recommend to always have a home inspection, always consult an attorney about contracts, Purchase agreements and any legal questions. Also consult a CPA or accountant about tax consequence regarding a Michigan home sale, or Michigan foreclosure.
