Buying a home is going to come with some upfront costs. But how much cash you’ll need on hand can vary widely depending on the type of mortgage, the size of the loan and more. Some homebuyers will face steeper upfront costs than others.
Here’s a look at five major expenses homebuyers may have to contend with:
Buying a home is going to come with some upfront costs. But how much cash you’ll need on hand can vary widely depending on the type of mortgage, the size of the loan and more. Some homebuyers will face steeper upfront costs than others.
Here’s a look at five major expenses homebuyers may have to contend with:
VA and USDA loans don’t require a down payment, which is a tremendous benefit. Conventional loans typically require a down payment of at least 5 percent, although some lenders may go as low as 3 percent. For FHA loans, the minimum is 3.5 percent. On a $200,000 mortgage, that’s $10,000 for the traditional conventional down payment and $7,000 for an FHA down payment.
Borrowers will often need to include a “good faith” deposit when they make a purchase offer on a home. This deposit, known as earnest money, signifies you’re a serious buyer. There’s no hard-and-fast rule for how much you need. Some buyers might put down $200, while others will write a check for $2,000.
Appraisals are a key part of the VA homebuying journey. This is a two-part process that assesses both the fair market value and the broad health and safety conditions of the property. We’ll talk about the VA appraisal process in greater detail later in this course. For now, it’s important to understand that you’ll be required to pay for an appraisal upfront.
Appraisals and home inspections are not the same thing. They look at different parts of a home in very different ways. Buyers aren’t required to get a home inspection, but it’s strongly recommended, as they’re much more detailed and granular than an appraisal.
There are costs and fees associated with originating and closing on your home loan. Closing costs can vary widely depending on the type of loan, where in the country you’re purchasing and what you’re able to negotiate with a seller. You’ll get an estimate of your closing costs fairly early in the home loan process.
From there, you’ll want to talk with your real estate agent about how to proceed. You can negotiate the payment of these costs with the home seller. The VA allows sellers to pay all of buyer’s mortgage-related closing costs and up to 4 percent in concessions, which can cover things like prepaid taxes and insurance and even paying off a buyer’s collections or judgments at closing.
Call us for backup! - 24/7
+1 787 678 000
Give us a call for assistance, inquires or to find out what you qualify to
Contact Us
445 Park Ave. NYC
+1 212-763-3700
info@acme.com
©2024 Bigvid.net. All Rights Reserved.