Do You Have Enough Money Saved for a Down Payment?

Ryan Band • Nov 19, 2020
Do You Have Enough Money Saved for a Down Payment? | MyKCM

One of the biggest misconceptions for first-time homebuyers is how much you’ll need to save for a down payment. Contrary to popular belief,  you don’t always have to put 20% down to buy a house . Here’s how it breaks down.

A recent survey by  Point2Homes   mentions  that 74% of millennials (ages 25-40) say they’re interested in purchasing a home over the next 12 months. The study notes, “ 88% say they have significantly less savings than the average national down payment amount, which is $62,600.”

Thankfully, $62,600 is  not the amount every buyer needs for a down payment  in the United States. There are many different options available, especially for first-time homebuyers (millennial or not). That amount can also be significantly less, depending on the purchase price of the house.

According to the  National Association of Realtors  (NAR), “ The median existing-home price for all housing types in August was  $310,600 . ”  (These are the latest numbers available).  NAR also  indicates  that:

“In 2019, the median down payment was 12 percent for all buyers,  six percent for first-time buyers , and 16 percent for repeat buyers.” (See graph below):

Do You Have Enough Money Saved for a Down Payment? | MyKCM That means if a qualified first-time buyer purchases a home at today’s median price,  $310,600,  with a  6% down payment , in reality, the down payment only amounts to  $18,636 . That’s nowhere near $62,600.

Knowing there are also programs like  FHA  where the  down payment can be as low as 3.5%  of the purchase price for a first-time buyer, that up-front cost could be significantly less – as little as  $10,871  for the same home noted above. There are also other programs like  USDA  and loans for  Veterans  that waive down payment requirements.

The  Point2Homes  study also shares how much millennials have indicated they’ve saved for a down payment. As we can see in the graph below, 39% have already saved enough for a down payment on a median-priced home. Another 47% are close to reaching that goal, depending on the purchase price of the home. Do You Have Enough Money Saved for a Down Payment? | MyKCM Unfortunately, the lack of knowledge about the homebuying process is keeping many motivated first-time buyers on the sidelines. That’s why it’s important to contact a local real estate professional to understand the requirements in your local area if you want to buy a home. A trusted agent and your lender can guide you through the process.

Bottom Line

Be careful not to let big myths about homebuying keep you and your family out of the housing market. Let’s connect to discuss your options today.

10 Essential Spring Maintenance Tips

By Ryan Band • 20 Mar, 2024
As winter bids farewell and spring knocks on our doors, it's time to shake off the cold and embrace the renewal that this season brings. Spring isn't just about flowers blooming and birds chirping; it's also the perfect time to give your home some much-needed attention. At Unbridled Homes, we understand the importance of proper home maintenance, especially as the seasons change. Here are some essential tips to help you prepare your home for the arrival of spring: Inspect Your Roof and Gutters: Winter weather can be tough on your roof. Start by inspecting it for any signs of damage, such as missing or damaged shingles. Clear out your gutters and downspouts of any debris to ensure proper drainage during spring rains. Check Your Exterior for Damage: Take a walk around your home to inspect the exterior for any cracks, gaps, or damage caused by winter weather. Seal any cracks in the foundation. Caulk around windows and doors to prevent drafts and moisture intrusion. Service Your HVAC System: Before the heat of summer arrives, schedule a professional HVAC inspection and service. Change air filters, clean vents, and ensure that your system is running efficiently to keep your home comfortable throughout the warmer months. Clean and Maintain Outdoor Spaces: Give your outdoor spaces some TLC by cleaning and inspecting decks, patios, and walkways. Power wash surfaces to remove dirt and grime, and inspect for any signs of damage that may need repair. Prep Your Lawn and Garden : Spring is the perfect time to get your lawn and garden ready for the growing season. Remove any debris, aerate the soil, and apply fertilizer to promote healthy growth. Trim back overgrown bushes and trees, and prune flowering plants to encourage new blooms. Test Your Sprinkler System: If you have an automatic sprinkler system, now is the time to test it and make any necessary repairs or adjustments. Ensure that sprinkler heads are working properly and adjust the watering schedule as needed based on seasonal changes. Inspect Outdoor Lighting: With longer days and warmer evenings, outdoor lighting becomes essential for both safety and ambiance. Inspect outdoor light fixtures for any damage or wear, and replace bulbs as needed. Consider adding new lighting fixtures or upgrading to energy-efficient LED bulbs for added savings. Clean Windows and Screens: Let the sunshine in by cleaning your windows inside and out. Remove and clean window screens, and inspect them for any tears or damage that may need repair or replacement. Check for Pest Infestations: As temperatures rise, pests become more active. Take the time to inspect your home for any signs of infestation. Look for droppings, gnaw marks, or entry points where pests may be gaining access to your home. Prepare for Allergy Season: Springtime allergies can put a damper on the season, so take steps to minimize allergens in your home. Vacuum and dust regularly, wash bedding in hot water, and consider investing in an air purifier to improve indoor air quality. By following these essential home maintenance tips, you can ensure that your home is ready to embrace the joys of spring. If you're considering building a custom home or undertaking any major renovations, our team at Unbridled Homes is here to help. Contact us today to learn more about our services and how we can help you create the home of your dreams.

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By Ryan Band • 01 Apr, 2021
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