Why Your Down Payment Matters!!

by Tom Ciccarone

With multiple offers commonplace, your down payment matters more than ever. Why? Here's a few reasons.

Financial strength - greater down payment portrays a stronger financial position.
Less reliance on a mortgage. If your income dips or a slight financial change occurs with you or a family member, less reliance on a mortgage can mean greater chance of still getting the mortgage.
Ability to cover an under appraisal. With over ask offers there is a risk the property will not appraisal. Buyers are utilizing appraisal waivers to strengthen their offer and ensure the seller receives the number offered.

In summary - more cash down will provide a greater sense of comfort to a seller. It is unfortunate this is very true as it affects first time homebuyers and buyers looking to trade up the most.

To learn more about down payments and strategies to make up for lesser down payments, call me any time!

-Tom Ciccarone