Down payment is always top of mind when buying a home. Here’s what to consider:
- You don’t always need to put 20% down to buy a home. It has its benefits: you’ll get a better rate and avoid mortgage insurance, resulting in lower monthly payments. If you’re not in a position to put 20% down, you’re not alone. First-time homebuyers typically put 5% down, and repeat buyers typically put 14% down2.
- SunTrust Mortgage has down payment programs as low as 3%3 to help you meet your homeownership goals while also staying on budget.
- Down payment doesn’t have to come exclusively from savings. Did you know there are over 2,200 down payment assistance programs4 across the country? Many buyers also receive financial gifts5 from family to help lower down payment expenses.
Call our experienced loan officers today to explore all your options. There are a number of mortgage solutions that can help you find the right down payment that meets your goals and budget.
When shopping for a mortgage, the lower the interest rate, the better the deal, right? Well, not always. Consider this:
- Interest rate is only part of the equation. You have to look at the full picture and balance rate, monthly payment and how closing costs will impact the cash you need to close. One way to compare mortgage options is to look at APR (Annual Percentage Rate), which factors in the costs of the loan for an apples-to-apples comparison.
- Interest rate and closing costs are connected. Borrowers can opt to pay additional fees to get a below market interest rate. Called “buying down the rate,” the result is lower monthly payments, but increased closing costs–meaning more cash is needed to close. Think of it like a seesaw, with interest rate on one side and closing costs on the other. When one goes up, the other comes down. Somewhere in the equation is your “sweet spot,” where you are getting a competitive rate while managing the out-of-pocket cash needed to close.
Call and talk to our experienced loan officers about what is most important to you: low monthly payments or minimizing the size of the check needed for closing. We’ll work with you to balance the tradeoffs and find the best interest rate that meets your needs.
The last thing you want is to fall in love with a home that is out of reach. Here’s why pre-approval is a smart strategy, especially in a seller’s market.
- Talking with us before you start your home search will help you to shop with confidence. Your SunTrust Mortgage loan officer will let you know which programs you may qualify for and provide an estimate of the loan amount you may be able to borrow.
- Our ConfidenceNow Pre-approvalSM boosts your credibility as a serious buyer1 with real estate agents and home sellers, who may prioritize an offer from a pre-approved buyer over a buyer who hadn’t taken this step.
Getting pre-approved is just a phone call or click away, and can be done quickly. We’ll even email you your letter!