Step 2: DOWN PAYMENT | First Time Home Buyer's Guide

Step 2: DOWN PAYMENT | First Time Home Buyer's Guide

You're new to the home buying process and you know the first step, what is the second step? The down payment! This can be a confusing topic because there are so many different answers that you will get when it comes to how much you'll need. And honestly, a lot of that has to do with step 1, the credit score (which is why it's so important!) but with some investigative work, you can get the RIGHT answer for yourself. As always, reach out to us with any questions, we love being Sacramento's real estate resource!

And in the last video, we talked about "Credit Score", well I have a good credit score, what now?

Now that you understand step 1 better, you can start preparing for the second step in the exciting home buying journey. In this video, we are going to dive into the down payment! Stick around!

When it comes to purchasing a home, there are a lot of things to think about and having a clear understanding of each step in the process is crucial. The first thing we discussed was credit score and how important it is to get an idea of where you stand before moving forward. Once you have an understanding of your credit score, the next thing on the list is coming up with a down payment.

What is the Downpayment and Closing Cost?

Closing cost is everything you need to pay to finalize the purchase of your home and it includes the down payment. There will be always a closing cost when you buy a property, but how much it will be? The typical range for closing costs is 2-5% of the purchase price of the home, but it can be higher or lower depending on a variety of factors.

There are a lot of ways to calculate how much you need for a down payment, but a good rule of thumb is to budget for 20% of the purchase price of the home. So, if you're looking at a home that costs $200,000, your down payment would be $40,000.

But the absolute way to be sure is to talk to a professional like us. We can help you investigate all of your options and find the best way for you to make your dream of homeownership a reality! Reach out today!

And that's how Downpayment and Closing cost works!

Stick around to our next step in the First Time Home Buyer's Guide,

"Determining How Much you can Afford"

Thank you for watching! We hope this was helpful. If you have any questions, please reach out to us! We're here to help make your homeownership dreams come true!

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