Many first time home buyers are starting to realize that it takes more than a GREAT DEAL on a property to achieve the HOME OWNER title. Attending a home buyer education course, becoming mortgage ready and being a "serious" buyer are the 3 elements to successful home ownership.
In Part I, I want to explain the difference between down payment and closing cost. When it comes to purchasing a home, you want to be prepared to pay a down payment. Down Payment = Investment! The mortgage lender is willing to invest 96.5% taking the greater risk and to show that YOU are serious, they require for you to invest the remaining 3.5% of the full loan amount. Have at least 3.5% of the loan amount saved and ready to use towards your future prior to starting your home search. Yes, there are several down payment assistance programs available... IF YOU QUALIFY. However, if you are a ready, willing and able home buyer, a program should not determine your future of becoming a home owner. Budget and save!
There are several people involved in the home buying and financing process that you will never meet. Guess what, they have to get paid for working on your behalf. The time and fees associated with getting your loan approved, preparing your paperwork and getting those keys in your hands are called Closing Cost. You have the underwriter, appraiser, title search, attorney, lender, application fees, taxes, property survey and much more are paid upon the closing date. This amount could range between $3000-$5000. Yes, in most cases you can negotiate that the seller of the home pay the cost for you or at least 50% but there are no guarantees...so be prepared to pay it yourself.
Before you contact a realtor and begin your home search, know what's involved to becoming a home owner. Many future buyers have joined my "No Buyer Left Behind" program where I assist you with budgeting, savings, debt repayment and home buyer education. Contact me today to find out more information!
No comments:
Post a Comment