It’s the reason you clip coupons and choose the office coffee rather than hitting the local coffee shop on your way to the office. It’s the reason you’ve become more familiar with the creatively cost-efficient “staycation” rather than a lavish vacation, and the reason you carefully consider each purchase before swiping your card. That’s right, it’s time to discuss the down payment, and more importantly, discuss exactly what is a down payment?
Making the decision to purchase a home is one of the largest financial decisions you will make. It is important to do your research, talk to your real estate agent, and make plans to ensure you purchase a home that is within your price range. In the same way it is important to understand what you need to know to make a financially responsible decision, it’s important to understand what can happen if something were to happen and you are no longer able to pay your mortgage, resulting in a foreclosure.