One of the biggest misconceptions I hear from first-time home buyers is you need 20% for a down payment on your first home. Now, don’t get me wrong, the more you can put down, the lower your payments would be. Often times you get a lower interest rate and you don’t pay mortgage insurance, but this isn’t always the end all be all. The average down payment for a first-time home buyer is only 6%. This is MUCH lower than the 20% myth that most think is true. When you’re buying your first home, most buyers don’t have a full 20% to put down. Thankfully, there are so pretty amazing programs that allow you to still buy your dream home, without needing that entire amount. In Denver, the market is appreciating at a high rate. As a home buyer, and future homeowner, you have the opportunity to gain appreciation on your property. In some cases, for those who didn’t put down the 20%, you can get an appraisal done a couple years after you purchased the home (2 years is usually the sweet spot). If you can show that your property has appreciated to reach the 80% loan to value ratio, you are able to drop off your mortgage insurance! This can be a really great work around for a lot of new home buyers. This allows you to leverage your money! At the end of the day, everyone is a little different and every situation can have a different outcome. The best thing you can do is connect with a local lender. They will walk you through all the options to find the right fit. Anndddddd, if you’re in the Denver area, reach out to Shelby Barret, she is an AMAZING resource for home buyers!