While you will likely get quite a few differing opinions when it comes to the amount of money that you should have for your down payment, the “20%” is one number that many people are touting. It offers some nice benefits, and it can make getting into your home on the Western Slope a bit easier than you might think at first.
When you put 20% down, you will have a better chance of actually getting your mortgage. It means that the lenders will not be taking as much of a risk. It also shows a commitment to the property, and that’s something that many lenders are looking for in a buyer. If you happen to have a seller interested in offering seller financing, a large down payment is better for them as well. Again, it shows that you are committed to staying in the home and not simply abandoning it if you don’t want to make payments.
A second benefit of having a 20% down payment is that your monthly mortgage payment is going to be much smaller. This means that you need to borrow less, so the payments will be more manageable. In addition, you will often find that the interest charged on a loan that has 20% down is generally a bit lower than a loan with less money down. Finally, you will already have equity in your home as soon as you step inside of it.
While you may find that you don’t always need to have a down payment this large when you are buying a home on the Western Slope, consider all of the benefits. The lower payments alone should be enough to entice you. It’s better to take a bit more time to save for a larger down payment so that you can reap the rewards we’ve mentioned!