Conventional Loan 25% Down The New Norm
April 17, 2008
Local Post Tags:25 percent down payment, 30 year fixed interest rate, Tucson home, tucson real estate
This is not just a hypothetical question. It is the Mortgage Pendulum continuing to swing to the very conservative side.
If 25% down becomes the norm a lot of potential buyers out there sitting on the fence that will be out of the market. Waiting for the house you have been watching to drop even further might not be an issue if you are planing on putting down a substantial down payment.
But if you have been saving some money each month and waiting for asking prices to come down even further you need to be looking both ways. Because if you are needing to finance more than 80% of the purchase price you could be in for a surprise.
Some lenders are now tying the down payment percentage to the FICO score of the potential borrower. I’ve read of one lender stating that if the FICO score is under 700 the percentage down for a 30 year fixed interest rate is now going to be 25 percent.
If you are thinking about buying a Tucson home one of the first things you need to do for yourself is find a lender to work with you. A lender that will keep you informed of what is happening in the volatile mortgage industry is a huge plus for you in this process.
Financing the purchase of a home is very much a part of the process of purchasing a home. Don’t just assume it will all fall into place.
You have probably been reading the Tucson Real Estate Market is a “Buyers Market”. Don’t believe all that you read. There is a good selection from which to chose, but sellers are wanting more in this market than in the past. Sellers want to know the people looking at their home have the finances to proceed to close should you decide to make an offer.
As my fifth grade science teach used to say “A word to the wise is sufficient”.
The flowers are for the buyers that get pre-qualified for their loan. It will make the purchase process of buying a Tucson home easier for you, your agent, and everyone involved.
Technorati Tags: 25 percent down payment, 30 year fixed interest rate, Tucson home, tucson real estate
One Response to “Conventional Loan 25% Down The New Norm”
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May 7th, 2008 at 12:15 am
I don’t know that 25% down would be a bad thing. At the very least, it would dramatically cut the foreclosure rate. Especially if these were fixed rate loans with 25% down.