subject: Is It Best To Get A Zero-down Loan? [print this page] There are different stages in the home buying process. Some of these are the planning stage where the buyer set their budget, choose the property type and home features they need and want, and the hunting stage where, in which the buyers look for, let us assume, Sacramento Real estate properties. When a buyer look for home, they can either go directly to listing agents or ask for listings of Sacramento Homes for Sale or they can start from online search of Sacramento MLS. After the home searching stage and picking homes that suit perfectly to what you think as the perfect home for you, the succeeding stage to get into is the loan application. For some, this can be the most crucial stage of home buying as you are not yet sure whether a loan company or a bank will approve of your application. There are various loan types available for home buyers nowadays, and most of the time, it will require a maximum of 20 percent down payment from your own account. But there are very few loans that offer zero-down payments. It will be safe to think that right now you are thinking of looking for loans that offers this kind of benefit as it seems to be a very convenient concept for buyers. Just imagine, one need not to make an effort to look for money they can use for the down payment. However, there are also some down side to getting a no-money down loan. Below are some:
You can lose the house, in the long run.
If you really do not believe that you cannot provide cash for the down payment, well, how much harder will it be for you to finance the home monthly? Furthermore, not being able to complete the money needed for the down payment can also mean that you are not earning enough money. Without the discipline and responsibility needed in home financing can only cost you to lose the house sooner or later. Do you think you can pay your monthly home loan payment for ten years or more without having troubles and difficulties? Basically, if you cannot pay the down payment, then chances are, you will only going to foreclose it in the future.
Higher monthly payments
Putting lesser amount for the down payment only means one thing; you have to pay higher amount of money for it every month. It may be more difficult for you to keep up with a higher monthly payment.
You are likely to get a smaller house
If you cannot find money for the down payment, then, most probably, the bank or the mortgage company will only give you a small amount for your loan. Because of the limited funds you have, you can only purchase a smaller home.
