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Home Ownership is Within Your Reach!

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Q: I don’t have 20 percent saved for a down payment but really want to buy a home. Can I?
A: Yes! While 20 percent is ideal, there are many loan options to put as little as 3 percent down. In some cases, depending on home location and loan product, there are 0 percent down options. In my opinion, however, I would recommend trying to save a minimum of 10 percent. This shows that you are able to budget and save. Owning a home comes with its expenses outside of just paying your mortgage payment each month. You’ll need to have savings for maintenance, upkeep and furnishing your new home. To go over your specific down payment options, always contact a mortgage professional.

Q: The housing market in Kansas City is on fire and I want to take advantage by selling my home for top dollar! My fear is that I will list my home, sell it quickly and won’t be able to find anything to buy. What options do I have to buy a home first and then sell my current home?
A: It’s not uncommon for consumers to have a lot of equity tied into their home. Typically, this is what is used for a down payment on the next home purchase. In the situation where my clients are buying before they are selling, we have two options.

Option one is to use a bridge loan; this is a short-term loan against the equity in your current home to be used for a down payment on your new home purchase. This loan is paid in full when you sell your existing residence.

Option two is to put the minimum down payment on your new home purchase. Once your current home sells, take the proceeds and recast your mortgage. This is the process of paying a large principal payment and re-amortizing your mortgage loan to lower the monthly payment. It is not a refinance, so your rate will remain the same as time of closing.

To discuss either option in further detail, feel free to give me a call! Not a lot of lenders offer the bridge loan product and we would gladly help in your next home purchase or refinance.

Written by: Adriana Bates 

Adriana is a partner at Clear Mortgage, a company that was created to bring some transparency to lending. Communication, consumer-friendly technology and no hidden fees are all pillars of Clear’s core values for their client experience. A mother of three young boys, Adriana understands how busy life can be. Home financing doesn’t have to add to the chaos of life. She also understands the balance between work and home is a necessity and tries to instill that in the office culture at Clear. Her goal is to grow the company as it expands into new markets (now lending in 6 states- KS, MO, FL, CO, NC, OH) with great people and family-first attitude. Adriana works with her clients during the loan process as a confidant, educator, and adviser. Adriana not only identifies their financial situation but also strives to understand her client’s priorities during this process. She believes in the value of making educated decisions and wants to provide her clients with enough knowledge so they are empowered to do so. Adriana also serves to advise them throughout the process on what to expect from Clear Mortgage, and what their role entails, in order to make the process as smooth as possible. Adriana is involved in the initial education/consultation, in discussing her client’s options, talking with them during the process and then ensuring everyone gets to the closing table. NMLS #440092