How Much Should I Save for A Down Payment on a House?

down payment on a house appleton wi

When people are looking at buying their first house, they’re always wondering how much should I save for a down payment on a house in Appleton WI. So in this article, I am going to go into detail on how much you need as a down payment and what you will typically face when you’re looking at buying your first house in the Appleton, Wisconsin area.

Different Loan Programs

It really comes down to what type of loan product you are going to go with when buying your first house in Appleton. Are you going to do a zero percent down Veteran loan? Are you going to do a three percent down or three and a half percent down FHA loan? Are you going to do a 20% down conventional loan? Depending upon what your credit score is and your credit history and what your debt to income ratios are, that will determine what percentage down you will typically need.

Nowadays, you can get by with as little as three percent down on your home. They do make conventional loan products that do a three percent down loan. And if you need a referral to a mortgage lender who can do this, just give me a call or go to the contact us page just above. So your down payment on a $100,000 house can range from say $3,000.00 to $5,000.00 to $20,000.00. Like I said, 3, 5, 10, 15, 20% is going to determine how much money you’ll need down.

Other Fees When Buying a House in Appleton WI

In addition to the down payment, you also have a minimal upfront cost of purchasing your house. So a down payment, like I said, is five, 10, 15, 20%, and then the closing costs, unless they’re paid by the seller, will be an additional about one to two percent at the very most. Your closing costs will cover your taxes, insurance, and title fees, lender costs that they charge in order to fund and finance the loan because that is how they get paid. Those are your initial upfront costs of purchasing the house and it gives you a general idea of how much you’ll need to save for a down payment on a house.

But My Parents Told me I need at least 20% down to buy a house

If your parents have told you, in the past, that you need 20% down to purchase your first house, that is no longer true. Maybe when they had purchased their first property in Appleton WI or even their current property, that was the case. Because mortgage lenders and banking institutions have become much more flexible on down payment they no longer require 20%. And there are some programs out there that even offer down payment assistance programs.

How Can I Help?

So like I said, if you have any questions or want to get in contact with a mortgage lender in Appleton WI, feel free to reach out to me. I would love to help you out, and if you’re looking at starting your first time home buyer process, fill out the form down below or give me a call on my cellphone, which is 920-252-2864. Best of luck with your Appleton house search and I hope to talk to you soon.

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