One of the biggest barriers to home ownership is the money needed to buy a home.
For Sellers, there are also significant costs involved with the sale.
We help our USA HOME TEAM member clients overcome this problem by offering huge discounts for all real estate transactions.
For Buyers: The money required is broken down into 2 categories: 1) Down payment 2) Settlement costs.
Your downpayment will vary depending on which loan program you choose.
The three major loan programs are: FHA - Federal Housing Administration > 3.5% down VA - Veterans Affairs Loan vets only > 0% down Conventional> 3% to 5% down.
Closing costs normally fall between 3% and 5 % of your purchase price. It includes:
Property Taxes 14 months
Insurance costs 14 months
HOA costs 14 months
Origination fee (1%, which other lenders chage, but we don't)
Title Fee (usually 1%)
Appraisal ($400 ish)
Closing costs, doc fees
Buyer's don't pay Realtor Fees, these are paid by the seller.
Remember, all lenders are required to provide you with a Good Faith Estimate detailing the costs involved with your home transaction. This is sent to you immediately after your final contract is signed by all parties. The realtor (me) sends your contract to the lender and to the Title Company, who opens title.
Lenders will want to see that you have down payment funds saved and in the bank for the past 60-90 days. They will request your last 2 months bank statements.
If you do not have a lot of money available to buy a home,here are some ideas:
1. Borrow against your 401(k) 2. Withdraw money from your 401(k) 3. Get a gift from a relative 4. We can negotiate for the seller to help with closing costs 5. Discuss with me how to roll in closing costs to the mortgage
*You can not borrow money for your down payment, but the settlement costs can be financed in the loan.
Normal Real Estate Sales fee is 6% sale price (for non-members).
Plus there is a 1% title policy, Settlement charges, survey (you don't need a new one if the home has one and it is acceptable to the lender).
For most sellers, figure on 7-10% closing costs involved with selling a home. Our members get a discount that gets this number below 6%
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