Why Larger Down Payments Pay Off

Buying a home is often the most expensive purchase a person will make in their lifetime, so it’s obvious why many consider it one of the most challenging decisions they’ve ever faced. Even deciding how much of a down payment to make can leave buyers hung up, as this may be the single largest transaction in the whole buying process. So what’s the right amount to put down? For some, the answer is as simple as whatever you can afford, but if you have the funds, making a larger down payment could pay off greatly in the end, and here’s why:

1.    You’re more likely to be approved

Typically speaking, the more money you pay down, the more likely you are to be approved for the remainder of the loan. Larger down payments are often considered signs of a strong borrower, and guarantee the lender less risk with the loan.

Read the story full here. (http://re-insider.com/2015/01/12/why-larger-down-payments-pay-off/)