Buying a home is a significant milestone that typically requires careful planning and some type of savings strategy. For many people, the largest challenge comes from accumulating enough money for a down payment and related expenses. Jake Duke, owner/broker of Duke Collective, Inc., says before diving into savings strategies, it’s essential to define homebuying goals.
"Also, taking time to review overall expenses and investments could save a lot," Jake reminds. "Stay informed and connected to local agents and lenders to understand the latest updates in the real estate market. What was true five years ago may not be true today. Great information leads to great decisions as you navigate the journey in this ever-changing landscape."
He says the Duke Collective team of professionals are dedicated to serving as true partners in home selling or buying journeys. Curious about how much a home would sell for in today’s market? Jake says the Duke team assists with complimentary home evaluations.
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WHAT PERCENTAGE OF HOUSE'S PURCHASE PRICE IS BEST FOR DOWN PAYMENT?
“Best is subjective, as that’s situational with the buyer’s ability and circumstances, but ideally 20%. In doing so, you eliminate Private Mortgage Insurance, obtain a smaller loan amount which comes with lower monthly payments, typically better interest rates and a better chance of getting approved for a loan, not to mention more equity upfront.”
TIPS FOR FIRST-TIME HOMEBUYERS?
“With a conventional loan, you can do 5% down, and some offer as low as 3% down. You can also opt for an FHA loan at 3.5% down, and for eligible veterans, a VA loan for 0% down. As a first-time homebuyer, the down payment can be the biggest hurdle, so use wisdom from local professionals to get started.”
ANY DOWN PAYMENT ASSISTANCE PROGRAMS TO EXPLORE?
“There are several options in grants, forgivable loans and lower-interest second mortgages. At Duke Collective, we work with great lenders that we'd love to connect future clients with.”
HOW DOES NEEDING/DESIRING A 'LARGE VERSUS MODEST' SPACE AFFECT PROPERTY INVESTMENTS?
“If desiring more square footage, that most likely will bring a higher purchase price and loan amount. One of the most important points before starting home searches is projecting firm monthly payment amounts, which can dictate the search and home size. It’s the delicate balancing of needs and wants with purchasing ability to secure a comfortable financial situation.”
WHAT ABOUT TRADITIONAL VERSUS INNOVATIVE METHODS (MONEY MARKET ACCOUNTS OR IRAS) REGARDING DOWN PAYMENTS?
“I’m not a financial adviser so I don’t give explicit financial advice, but there are a few points regarding wisdom of real estate investments. It’s a tangible asset that typically appreciates over time. These investments come with several tax advantages, such as leveraging money easier. With the ability to long-term rent, short-term rent and sell, there are several 'outs' with this asset. This helps guard the investment in times of economic volatility and hedge against inflation. Lastly, the ability to cash flow this investment while growing the equity delta is one of the greatest benefits.”
WAY TO BEST ROI?
“I suggest being diligent in setting individual or family budgets for a year, two or three. It definitely can take discipline but the end of the road's worth it. Determining a certain dollar amount goal and finding ways to cut expenses, then rolling that into a down payment fund has helped many first-time homebuyers.”
ADVICE FOR HOME SELLERS IN 2025?
“First impressions are critical in real estate. I'd recommend working with a professional, unless you have the skill set, to make repairs or updates needed. Don’t wait. Find a local, trusted agent to assemble a CMA to understand what price range the market supports at that given time; then craft a listing strategy to give best results in the sale."
"Our clients-first approach means that you’ll be working with a team of professionals who listen to you, provide expert advice, and work hard on your behalf." ~Bargersville-based Jake Duke, owner/broker of Duke Collective.