Five Tips for Buying How to secure home financing the smart way!
Three elements are crucial to the purchase of a home—the down payment, closing costs, and qualifying for a mortgage. Here is a quick rundown of what you should know:
Down payment Typically, conventional lenders will require a 20% down payment, although you may be able to find loans with down payments of as little as 5% (perhaps less in some cases). With down payments less than 20%, you likely will have to pay private mortgage insurance, which guarantees the lender will be repaid in case of default. Mortgages insured by the Federal Housing Administration (FHA) and those available to U.S. veterans often require very low down payments. Ask your lender if you can qualify for one of these loans. If you are having trouble coming up with the down payment, here are some tips to ease the burden:
• Consider down payment assistance programs. The Texas Department of Housing & Community Affairs offers down payment assistance as well as low-cost mortgages for first-time buyers. For more information, visit MyFirstTexasHome.org.
• Start early. Begin saving for a down payment as soon as possible. After a few years, it adds up.
• Convert stocks. Consider selling stock for the down payment. The housing market often is a better investment anyway.
• Sell an asset. If you have “toys” such as a boat, extra car, or other asset, consider selling it for the down payment.
• Borrow from relatives. Today lenders will allow you to use money borrowed from relatives as the down payment. In many cases the relatives do not need to co-sign the mortgage. Check with your lender for restrictions. Closing costs No matter what home you buy, there will be closing costs. These can include: discount points, title insurance, escrow fees, attorney fees, termite report, recording fees, appraisal fees, document preparation fees, notary fees, and a loan underwriting fee. Usually these are due in cash, but sometimes they can be folded into the mortgage. Loan qualification The size of the mortgage you qualify for is based mainly on the interest rate offered and your income. The higher the interest rate, the higher the monthly payment. And, the higher the monthly payment, the more income you will need to qualify for the mortgage.
Contacting a lender before you’re actually ready to make an offer on a house can be a good idea. This head start gives you a chance to work out any problems that may arise without the pressure of contract deadlines.
Your one-stop source for real estate services covering the Houston Metro Area. With a focus on exceptional service, you’ll find everything you’ll need from complete MLS listings, valuable home value calculation tools, neighborhood information , and school information! Do you need to sell your home, click here to request a comparative market analysis!
In today’s competitive real estate market, timing is everything. Many good homes are sold before they are ever advertised. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notification Service.
If you own real estate that you’re thinking of selling, I would be happy to provide you with a FREE Home Evaluation.
Whether you are buying or selling a home hire someone like me, who will earn your business. I invite you to contact me as I’d be happy to assist you with this important transaction. In addition, if you have any general questions about buying or selling real estate in Houston, please contact me as I am more than willing to help.
I service all areas of the Houston Metro Area. I work with you for commercial or residential real estate. Do you need to sell your home? If you are looking for land, homes, townhomes, condo’s, loft’s or an apartment complex, or an experienced real estate agentthis is the place.
While you are here, feel free to have a look a couple of my current listings below.
So until then, should you, your family, or your colleagues need a realtor please don’t hesitate to contact me via Facebook or by phone at 281.798.4599.
@TheTexasBroker (a.k.a Allen Keith Hebert)
#ForSale
#NewHome
#HouseHunting
#MillionDollarListing
#HomeSale
#HomesForSale
#Property
#Properties
#Investment
#Home
#Housing
#Listing
#Mortgage
#HomeInspection
#CreditReport
#CreditScore
#Foreclosure
#NAR
#EmptyNest
#Renovated
#JustListed
Area hashtags
#Kingwood
#Spring
#TheWoodlands
#Humble
Branding hashtags
#AllenKeithHebert
#TheTexasBroker
#RegisterRealEstateAvisors
#RREA
#HoustonRealEstateRadio
#TexasBusinessRadio
#AlHebert
#TexasProudRealty
#ExitRealtyNorthEastHouston
