How much of a down payment do I need to purchase a house?
The down payment required to purchase a property is between 5 and 20% of the purchase price.
- Purchase price $500k or less, 5% of the purchase price.
- $500k to $999,999, 5% for the first $500k, 10% for the portion of the purchase price above $500k.
- $1 million or more, 20% of the purchase price.
Who can co-sign on a mortgage application?
Any immediate family members
Can I purchase a vehicle before buying a home?
If you require financing to purchase the vehicle, it’s best to wait and hold off, as the monthly payment will affect how much you can qualify for a mortgage.
What is the minimum credit score to purchase?
There is no set minimum credit score, but if you would like to get approved with a traditional bank and for the best rates, a score of 650 + is recommended.
What fees are involved when purchasing a home?
You should always set aside extra funds to cover closing costs which include legal fees, property transfer tax and any broker/lender fees. Amounts may vary depending on the mortgage you are getting approved for.
Should I get pre-qualified first?
Yes, you should always reach out to a lender/broker first before searching for a home so you will know how much you can be pre-approved for.
Do I need a realtor?
If it’s a private sale through someone you know, you don’t need a realtor, as you can write up a mutual agreement that is notarized. If not, you should definitely work with a realtor to write up offers for you and help you search for the right home.
How much of a deposit is required when putting in an offer?
It depends on the seller but typically 10-15% of the purchase price.
If you have questions and would like to speak with a BMP representative, please contact us.
To get started with Bayfield Mortgage Professionals (BMP), apply online using the convenient and secure BMP online mortgage application.
