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 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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Author:Edie Webber Phone: 817-798-6630 Dated: September 3rd 2016 Views: 400 About Edie: My current state of happiness and realized dreams is the hard won result of a lifetime journey. I ha...
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"The home buying process was foreign before I started my home journey purchasing process. A friend
referred me to Terrie. Word of mouth is the best method! Terrie answered all my concerns and questions
regarding the entire purchasing process. She was able to walk me through each of the buying process step
by step. The best experience was that she listened to my needs and understood what I was looking for as
far as my budget. She was available every time, I scheduled an appointment to view a property within
reasonable time frame (same week). Thank you Terrie for making my first home buying experience not an
only a great experience but negotiating in many angles beyond the asking price. Thanks Again!”"