WHAT A BUYER NEEDS TO KNOW BEFORE HOUSE-HUNTING BEGINS!
Buying a home starts with enlisting a Realtor you can trust!
DO: Contact Stephanie Anderson, Britton Group, inc. @ 321-978-3060!
DO: Learn your credit score and buying power. Your Realtor can direct you to lenders who will work with you to determine the type of loan that will work best for your particular situation.
DO: Save money for a down payment (3.5% – 20% of purchase price). Be prepared to place apx 1% of purchase price down as an escrow deposit when making an offer on a property. This deposit will be included as part of your down payment.
DO: Set aside funds for closing costs (usually 3 - 3.5% of purchase price). These funds are in addition to down payment. During purchase negotiations, closing costs can be requested from the Seller, however, don't count on this. It’s best to have these funds in reserve.
Closing Costs (3 – 3.5% of purchase price) are made up of these items:
• Escrow reserve for taxes and insurance,
• Loan expenses
• Recording fees for deed and financing statements • Appraisal fees
• Buyer's Inspections
• Survey (and elevation certification, if required) • Buyer's attorneys' fees (if elected)
• Lender's title policy and endorsements • All property related insurance (Home Owner’s policy first yr)
• HOA/Condominium Association application/transfer fees (if applicable)
DO: Get a pre-approval from your preferred lender before you begin the house-hunting process. Additionally, insist they give you a list of lender fees. Compare lenders for value!
DON’T: Open any credit accounts within 6 months or more before purchasing a home—it will lower your credit score & reduce your home buying power
DON’T: DO NOT allow multiple lenders to pull your credit score—every pull reduces your credit score. Shop around for lenders by informing them of your score or score range and learn about their product offerings.
DON’T: Pay PMI if you don’t have to! Unless you're using a VA loan, if you place less than 10% – 20% down on a home, you will pay Private Mortgage Insurance (PMI). PMI is a fee that lenders charge to insure the mortgage. PMI typically costs between .5% to 1% of the entire loan amount. For example, PMI on a $100,000 loan could cost $1000/year, which would add an additional $83/mo to your monthly mortgage payment. PMI will drop off of a Conventional loan after the loan is at 78%. But PMI will NEVER drop off of an FHA loan.
I've navigated through this process many times--personally and with my clients. I'm here to help--let me know what I can do for you to make the home buying process easier!