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Should We Wait Until We have 20% Down Payment to Purchase Our New Home

This is a question that Orion’s brokers hear often. Sure it takes a lot of money to purchase a home. Combine that with avoiding mortgage insurance, and we have many families who could purchase a home today but are delaying doing so in order to save more money for a larger down payment. As our brokers tell their clients, the cost of waiting for accumulating a higher down payment to avoid mortgage insurance can, and usually does, costs you more in the long run.

The counter-argument is that the housing market is slowing in some areas where Orion lends. So, the question arises, if the market is slowing and prices may come down, does it not make sense to wait to purchase and let prices fall further and while waiting save more money for a down payment? Possibly, if interest rates stay near their current levels and do not increase. But predicting the market is nearly impossible.

If a buyer is looking for a place to raise their families, spend their retirement, and stay in the home for the long term (ten, fifteen, twenty years), experienced brokers will tell them that minor market corrections are not of as much importance as if the client was looking to purchase and then sell in the next three or five years.

If your client has three, five, ten percent available of the purchase price of the home they want to buy, then Orion has a program to help buy the home. Buy the home today with the funds your client has available and begin creating the home for their family. Yes, there may be a dip in the future of a home's value, but does it matter if your client will not be selling?

We all want to find the lowest price possible, but often while looking for the lowest price we are missing out on the best quality, best service or best product for ourselves and our family. Remind your client, have they ever been shopping different airlines for ticket prices for their family vacation and see a good price, but then take five or ten minutes more to see if there is a better price, then gone back to the site with the lower price and find there are no more seats available? They lost out on a potential bargain by looking for a better one. This happens to home buyers as well, even in a soft market.


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