How Using Your Latest Paycheck For A Down Payment Could Stall Your Mortgage
How Using Your Latest Paycheck for a Down Payment Could Stall Your Mortgage by Scott Sheldon
Are you saving up a down payment to buy a home? Here’s something you need to know: Your paycheck can work against your down payment-savings plan if you aren’t careful.
Buying a home requires precision planning, good income, good credit, manageable liabilities and a healthy down payment. Having as much as 3.5% of the purchase price can be a big factor for many families looking to get their piece of the American Dream. In some areas, it can be best to put down 20% of the sales price of the home.
Not all the money you save is created equal, however, and here’s why. When you save money from your paycheck (a good idea for personal financial planning in general), that money is not automatically eligible to be put toward purchasing a house. It’s called income from assets, and income from assets in the world of mortgage lending is frowned upon.
Frank Provencal has over 20 years of combined public service with the Maine Department of Corrections and the U.S. Army. He brings to eXp Realty the same level of confidence, dedication and attention ....