Irvine, CA (PRWEB) December 04, 2013
When buying a first home, borrowers need funds available for a down payment and closing costs. This can easily add up to tens of thousands of dollars, potentially pushing would-be buyers out of the market place. Intelliloan, an Orange County, CA-based lender, offers new buyers plenty of ideas to help them gather adequate funds.
"Our first tip for your down payment is: start saving. Start saving before you start looking. Start saving as early as you can," advises Michelle Tucker, of Intelliloan.
In the past, homebuyers had to put down close to 20 percent of the home’s cost as a down payment. Nowadays, it’s more like 5-10 percent; even lower, at 3.5 percent for an FHA loan; and in some cases, borrowers don’t have to put anything down. Most typically this is when a borrower is a military member or veteran, or is buying a home in a rural area through the USDA, or is eligible for a state grant.
"There are ways to get help with your down payment," Michelle said. "For instance, a parent or relative can make a cash contribution or the home seller can pay part of the closing fees. But regardless of the help you get, understand this: the less you put down, the more you may have to pay in monthly payments. You’ll get a better deal if you make a down payment - that’s why many home buyers choose to buy with some cash up front. If you borrow more than 80 percent of the home’s value, typically you pay a monthly fee for MI (mortgage insurance)," Michelle added.
Additional tips on gathering a down payment:
Metropolitan Home Mortgage, Inc. DBA Intelliloan™ is a direct mortgage lender based in Irvine, California and established in 1993. Intelliloan™ is approved by HUD, FHA and FNMA, and is licensed in 18 states. Intelliloan is an Equal Housing Lender and has been a member of the Better Business Bureau since 1999 and has an A+ rating. NMLS #3290.
For more information, go to http://www.intelliloan.com or call 877-263-8499.
Metropolitan Home Mortgage, Inc. DBA Intelliloan™ is a California corporation headquartered at 4 Park Plaza, Suite 800, Irvine, California 92614 and is licensed or registered or exempt from licensing to conduct business in the following states: Arizona Mortgage Banker license #0907461; licensed by the California Department of Business Oversight under the California Residential Mortgage Lenders Act, license number 4130924 and 6036970; Colorado Department of Regulatory Agencies, Division of Real Estate NMLS#3290; Connecticut Mortgage Lender License #ML-3290; District of Columbia #MLB3290; Florida Mortgage Lender Servicer License #MLD423; Illinois Residential Mortgage license #MB.6759473; Maryland Mortgage Lender License #06-20616; Massachusetts Mortgage Broker/Lender License #MC3290; Michigan 1ST Mortgage Broker/Lender License #FL0015148 and Michigan 2nd Mortgage Broker/Lender License #SR0015343; Minnesota Residential Mortgage Originator License #MN-MO-40019736; Nevada Mortgage Broker License #3759; New Jersey Residential Mortgage Lender License -- NMLS#3290; Oregon Mortgage Lending Branch License #ML-3692; Pennsylvania Mortgage Lender License #40659; South Carolina Mortgage Lender/Servicer License #MLS – 3290; Virginia Broker/Lender License #MC-5718; Washington Consumer Loan Company License #CL-3290. NMLS#3290. All rights reserved. © 2013. Michelle Tucker NMLS# 377862
•Regulated by the Illinois Department of Financial and Professional Regulation, Division of Banking, 320 W. Washington Street, Springfield, IL. 62786, 217-782-3000.
•Not all branches are licensed in every state; please contact your local office to determine eligibility.