Robert Vernon | Broker CAM
(305) 606-9539
robert@miamiwaterfrontproperties.com
Thania Vernon | Broker CAM
(305) 582-3761
thania@miamiwaterfrontproperties.com

How Much Money Do You Need to Buy a Home?  How Much Money Do You Need to Buy a Home?


How Much Money Do You Need to Buy a Home?

Written By: David Reed
Tuesday, April 30, 2019

Your first stop is talking with your loan officer to find out which loan program best suits your needs and qualifications. For instance, if yoursquo;re eligible for a VA loan and you want to come to the closing table with as little cash as possible, the VA loan is likely your best choice. Therersquo;s no down payment required for a VA loan although you can make one if you want and the veteran is restricted from paying certain types of closing costs. If yoursquo;re looking at a higher end home and need jumbo financing, you may be asked to make a down payment of at least 20-25 of the sales price of the home.

Your loan officer will provide the proper loan options and both of you will decide on which loan works best for your situation. Once you decide the type of loan you want, yoursquo;ll need to ask for a Loan Estimate which provides a breakdown on closing costs that yoursquo;ll be responsible for. How much are closing costs? Thatrsquo;s a broad question.

Closing costs will vary based upon the type of loan and where the property is located. But when you make the request for a closing cost estimate, thatrsquo;s your starting point. You can also ask for a lender credit that can be used at the closing table to offset some or all of your closing costs. This can usually be accomplished with a slight upward adjustment with the interest rate selected for your loan program.

There are one-time fees associated with the loan such as money for an appraisal and credit report and title insurance, attorney and escrow fees in addition to various third-party charges. There are also recurring fees that will happen again and again as long as you own your home. Property taxes, home insurance and mortgage interest fall into this category of recurring fees.

Next, yoursquo;ll need to know about your down payment. With a VA loan there are no down payment requirements. There is no down payment needed for a USDA loan. FHA loans ask for a down payment of at least 3.5 of the sales price. For conventional loans, there is a minimum 5.0 down payment. Both Fannie Mae and Freddie Mac offer special programs that ask for a down payment of just 3.0. Jumbo loans typically ask for a minimum down payment of 20 but there are ways to utilize two mortgages, a first and a second, to finance a jumbo purchase with less than 20 down. Your loan officer will help with that.

So far, wersquo;ve got closing costs, both recurring and non-recurring and down payments. But therersquo;s one more- cash reserves. Cash reserves are funds that will be sitting in your bank account after the closing has taken place. Cash reserves are calculated as the number of months of house payments. If a loan needs six months of reserves and the mortgage payment, including principal and interest, taxes and insurance, is 3,000, there will be 18,000 of reserves identified and verified.





Copyright© 2019 Realty Times®. All Rights Reserved
Search in English Search in Spanish Search in French Search in Italian Search in Portuguese Search in German Search in Russian Search in Chinese
The Sands of Key Biscayne
The Ritz-Grand Bay Residences
Key Biscayne FL
Marketing Services
Updated: Friday, May 24, 2019

5 Reasons Every Agent Needs Vi...
Anymore, agents are utilizing social media, newsletters, mailers, and so much more in their ...

Redfin Goes Direct with Buyers...
At this point, the jury is out. But people have some feelings.What is Redfin Direct?...

Copyright ©2019Realty Times®. All Rights Reserved

650 Curtiswood
Check us out in KEY BISCAYNE MAGAZINE  Remarkable Key Biscayne home. Completely...

Spring Home Checklist
https://www.floridarealtors.org/FLRealtorMagazine/upload/ShareThis_Oct.pdf  

Latitude on the River
As we finish the second month of 2018, I am sensing an uptick in activity around the Brickell...

Happy Memorial Day Weekend
http://miamiwaterfrontproperties.bmeurl.co/702F9C5

Weekly News for month of April
Interest rates are coming down. Now is a great time to buy. Inventory is increasing thereby...

The Lofts Downtown Miami
Two bedroom, two bath loft style corner unit in the heart of downtown Miami. Urbanized living...

Real Estate Resource Center
Client Login
New Listing Email Alerts