Buying your first home involves some sacrifice. You’ll have to come up with a down-payment. Your aim should be to put down 10 percent to 20 percent of the purchase price. The bigger your down payment, the lower your mortgage payments will be. Tack on another 3 percent to 5 percent for closing costs and that is your goal. Sure, the number may be scary, but it’s better to know and be prepared than to be caught short later.

If you must the borrow a portion of the down payment, particularly if you find a home that your know is a great buy. You might consider borrowing the remainder of the down payment from your 401(k). The interest rate is usually good compared with other loans (typically, the prime rate plus a point or so) and you generally have 15 years to pay back the loan. Plus, the interest and principal you pay go back into your own account.

To find the perfect home, RE/MAX Properties REALTORS® Annette Smith is available to help you be an informed home buyer or home seller in today’s changing Sarasota real estate market.

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