will want to ensure that you have an adequate reserve. This is in case something in the home breaks and needs to be replaced, or if you lose your job and need money to make payments while you look for new employment. Multiple financial experts have agreed the general rule of thumb for a down payment is around 20%, but you are able to do it with as little as 3.5% in the case of Federal Housing Administration mortgages. These are constantly undergoing change, so get the most up to date information from your lender. Keep in mind that if you are paying less on the down payment, you will be paying more monthly. This also includes the private mortgage insurance you will need to pay, which is known as the mortgage insurance premium. The mortgage insurance premium only applies, however, if your down payment is less than 20%. Improving your credit score does not happen overnight - it takes time and consistency. That's why it's important to start monitoring your credit as soon as you begin thinking about buying a home. By keeping your credit score in good shape early on, you can avoid paying higher interest rates and save significantly over the life of your mortgage.
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