Homes for Sale
How much money will I have to come up with to buy a home?
Answer: Well, that depends on a number of factors: house value and mortgage program. In general, there are three costs you need cover: earnest money - the deposit you make on the home when you submit your offer; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
Your real estate broker will put your earnest money into an escrow account when you make an offer on a home. Your earnest money will be applied to the down payment or closing costs if the offer is accepted. Your money will be returned to you if your offer is not accepted.
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If you want to lower your mortgage payments, you need to put more money into your down payment. Some loan programs require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA program. FHA loans require only 3% down - and sometimes less.
Closing costs - average 3-4% of the price of your home - which you will pay at settlement. These costs cover processing expenses and various fees your lender charges. Your lender will give you an estimate of the closing costs when you apply for your loan, so you won't be caught by surprise.
Finding a mortgage for your home by state
How do I know if I can get a loan?
Answer: Your mortgage broker can help you determine the loan amount. Use mortgage calculators to see how much mortgage you could pay - that's a good start. You might want to wait awhile longer, if the amount you can afford is significantly less than the cost of homes that interest you. A mortgage broker can help you evaluate your loan potential. Mortgage broker will know what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan.
