Expenses To Be Aware Of When Buying A House…

Before you go house hunting make sure you have enough money available to get your loan approved and your house closed.

…I know it sounds simple, but many people don’t realize the amount of funds they will need to get into a house.

Here is a simple breakdown of your out of the out of pocket costs you could expect by loan program.

1) VA: 100% loan. No down payment.

2) USDA: 100% loan. No down payment

3) FHA: Minimum 3.5% down payment.

4) Conventional: 5% minimum down payment. There is also a 3% down option.

…but you can expect more out of pocket than just the down payment. There are two other costs you can expect to pay when you purchase a home…

1) One, is prepaids. This is pre paid interest, taxes, and insurance. Typically your prepaids will run 1% to 2.5% of a sales price.

2) Then there are your closing costs… Typically closing costs (from all entities – title, appraisal, mortgage, survey, etc.) will add another 1.5% to 3% to a sales price.

If you are house shopping you need to be prepared for these additional costs.

There are several ways to pay these costs:

* Buyer can pay them.

* Realtor can pay them.

* Loan officer can help pay them.

* Buyer can get a gift, or grant to pay them.

* Seller can pay them.

If you would like to speak with me in more detail about how to get your closing costs paid just give me a call or shoot me an email.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

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