By Kim Buish

Are you a first time home buyer and are thinking about buying a Houston Texas Home if so, you’re not alone.

2016 is certainly shaping up to be another busy year in the local Real Estate market, especially for first time home buyers, and you can give yourself the advantage if you know exactly how much money you need to put down on a home.

20% Vs. 3% Down

Although most people will tell you that in order for you to buy your first Houston Texas Home you have to put down at least 20%, the reality is that you can buy a home in 2016 for as little as 3% down or even in some cases you can buy a home by putting no money down

Keep in mind that the less money you put down when buying a home in Houston Texas means that you will ultimately pay more for your monthly mortgage payment so if you can wait to save a little more money it will only pay off in the long run.

If a family member, friend or relative decides to gift you the money that you need to put down 20% on a home make sure that you have proper documentation of those gifts because your lender will want to see documentation of income just so they will know that you have the ability to repay your mortgage loan.

Private Mortgage Insurance

The most important tip to keep in mind from this article is that if you put down a smaller down payment on a home you will also have to pay more for your Private Mortgage Insurance (PMI) each month so this could amount to an additional $100 or more per month that you will need to add to your monthly mortgage payment.

Buy a Houston Texas Home

To get started with buying a Houston Texas Home, or to view homes for sale contact me, Kim Buish, Realtor® with Red Door Realty & Associates by calling me at (713) 819-1642 or click here to connect with me online.