The size of your down payment is largely a financing issue between you and your lender.
Talk to Your Lender
Your Arizona lender will tell you the minimum down payment for the loan program you’ve chosen but there could be advantages to putting more money down than the minimum.
Keep in mind that the larger your down payment, the more attractive your offer will be to the seller. That’s because the larger your down payment, the less likely you’ll have trouble getting financing and the more likely you’ll actually be able to buy the home from the seller.
On the other hand, you may want to make the minimum down payment possible to save cash that you can put into improving and updating the home after you buy it.
You Gotta Have the Promised Down Payment
Be careful that if you say in your offer that you will have $X down payment at closing, that you actually have $X at closing.
If you don’t have the promised down payment at closing and the home purchase falls through because of it, then the seller is likely to keep your earnest money. This is one scenario where it’s clear that you would be in breach of the contract and could lose your earnest money.
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