Deciding how much of a down payment to make when buying a home can be a challenge — and it can make a big difference in how much your ultimately home costs. The amount of money you pay up front determines how much your mortgage payment is. If you can afford to make a down payment that is larger than average on a home, should you do it? Check out the reasons you may want to make a substantial down payment.
1. Easier Approval
Affording a large down payment is a sign of borrower strength and shows lenders that you know how to save. Since this is one of the best indicators of creditworthiness, you are more likely to get approved for a mortgage with a larger down payment. Further, if you are in a multiple-offer situation, offering the seller more money up front can be the key to outbidding other prospective buyers.
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