Answers by Jamie Walker

Ezekial, While 20% downpayment is customary on a conventional loan, there are other loans & programs available to borrowers that have substantially lower downpayment requirements. If you are a veteran, a VA loan may lend 100%, and FHA loan generally requires a 5% downpayment. There are also a lot of great programs for first-time home buyers; some states even have grants that do not need to be paid back. Make sure to discuss with your lender to see what options are available to you!

Yes! Both the buyer and seller pay for title insurance at closing, but each type is slightly different. The seller pays for the title insurance coverage for the buyer, and the buyer pays for the title insurance policy for their lender. A lender’s title policy is designed to protect the financial institution providing your mortgage from title claims that would put their stake in your home at risk. Lenders almost always require borrowers to purchase title insurance on the lender’s behalf as part of the loan-approval process. It’s considered a closing cost.

The first thing you must do is speak to your lender. It is imperative that you know how much you can spend based upon not only what you can afford, but what you are comfortable with allocating to housing expenses on a monthly basis. This way, when you are home shopping you can stay on budget. Additionally, many lenders can assist first-time home buyers in qualifying for programs/grants that may benefit you.