What steps must I take to sell my home?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Hello everyone

This is Charles McShan from Century 21 Universal. We are in the month of September 2019 in the City of Chicago. Normally during the Summer months, parents moved their families so their children can be enrolled in the schools for the new semester. The majority of the other kids are back in their regular schools and the older ones are attending their colleges, Trade Schools and Universities of their choice. But no matter the day or month the housing market continues to move forward. True the inventory is tight but there are homes on the market and there are buyers looking to buy homes. With that being the case I decided to write this blog on the subject of the Down payment. People ask that question a lot so with this blog post I hope to answer the question of How much of a down payment should I put down on a home?

  Just what is a Down Payment? How much should you put down?

   Well, a down payment is what you put down you are making a purchase whether car, a big-ticket item and yes when you are buying a property. That payment is to cover a portion of the purchase price and that payment normally  comes out of your pocket in the form of cash, check or a credit card. The next question is how much should I put down on my home purchase? There are many ways to answer that question.                                                                         How much should I put down on a home?

1: A large down payment keeps your loan amounts smaller. That also means that you will pay less in total interests costs over the entire life of the loan and that means your payments could be lower. Lenders also like to see lower down payments because if you default they can keep the down payment and start over reselling that home again. also, the bigger the payment the less likely you will have to pay private mortgage insurance ( PMI) or other similar fees. Lower monthly payments also can help you directly if, for example, you lose your job with a smaller down payment you can bob and weave with your money. On the other hand with an FHA loan mortgage costs decrease with bigger down payments and you will be stuck with FHA insurance for the life of the loan unless you refinance to a Non -FHA loan to get rid of the insurance.

 Now let’s flip the switch if you do not have a large down payment you must simply work with what you have. In reality, the majority of people can not come up with $40.000 to cover the 20% down on a $200.000 home. With a smaller down payment, your excess money could be used to cover emergency situations such as car repairs or medical emergencies that affect us all. You can also keep money stash away for those home repairs that come out of nowhere. Of course with a smaller down payment, you will pay PMI insurance until 20% of the loan is paid off. Let us not forget to talk about closing costs you put down a small down payment your closing costs will be very high

Next question, Can you get a mortgage with 2 to 3% down? We all know about  FHA 3.5 loans and Quicken Loans that offered 3%  loans so it is possible.2% loans are not likely

 Either way, whether a small down payment or a large downpayment the first steps you take can either help you or haunt you for years to come so make your decision wisely and start saving for your down payment. A home is a very beautiful thing. I am in the home selling business. My office of Century 21 Universal Real Estate is located at 7300 N.Western Ave in the West Ridge area of the city of Chicago. Chicago is a beautiful city with a lot of things going on. How is the housing market? It is true, inventory is tight and that is not a lot of homes on the market but that should not stop you if home Ownership is what you really desire. Have you seen a home in the Chicago area that you are interested in? My contact information is below contact me and I will set up a showing. I look forward to hearing from you. Thank you and have a good day

                                                            Charles McShan

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