What are the costs to expect?
Cash to close varies with each home price and each transaction. To best prep for the cost of buying, save around 6-8% of the total house price you are searching for.
Other upfront cost:
Earnest Money
Option Fee
Inspection
HOA Transfer Fee
There are down payment assistance programs available for buyers with a credit score of 640+.
During your buyer's consultation, feel free to discuss all financial questions and options.
Can we purchase a new home, contingent on the current home sell?
If you're thinking about selling your home, let's set up a time to see what your home value is!
Right now, we are currently in a seller's market. Now is a great time, and extremely beneficial when it comes to receiving the highest amount for your home.
Schedule a selling consultation. I will give a full report to discuss all things including selling your home for the highest value!
What are the different types of loans?
1. Conventional loan
Minimum credit score required: 620 (Down payment amounts vary)
Conventional mortgage loans aren’t insured by a government agency, like the U.S. Department of Veteran Affairs or the U.S. Department of Agriculture. Instead, these loans follow standards set by government-sponsored mortgage loan companies, Fannie Mae and Freddie Mac. These loans are more affordable and require a minimum 620 credit score.
2. FHA loan
Minimum credit score required: 500 (with 10% down) or 580 (with 3.5% down)
An FHA loan is insured by the Federal Housing Administration and an option for borrowers who are deemed a higher risk due to low credit scores and little money to put toward a down payment. The credit score requirements differ based on how much money you plan to put down. Borrowers with higher credit scores can qualify to make a lower down payment.
3. Here’s the breakdown:
Minimum 500 credit score, needs 10% down payment
Minimum 580 credit score, needs 3.5% down payment
Keep in mind that if you make a down payment less than 20%, lenders will probably require you to take out primary mortgage insurance (PMI) to cover the cost if you default. PMI can cost as low as 0.5% to upwards of 2% of your loan amount annually, according to Experian.
4. VA loan
Minimum credit score required:Many lenders prefer 620
A VA (Veteran Affairs) loan is insured by the U.S. Department of Veteran Affairs and designed for eligible members of the military community and their spouses. This type of loan doesn’t require a down payment. And while the VA doesn’t set credit score requirements, most lenders will require a minimum 620 credit score.
5. USDA loan
Minimum credit score required: None officially, though most lenders prefer 640
A USDA loan is insured by the U.S. Department of Agriculture and meant for low- to moderate-income home buyers. Similar to a VA loan, the USDA doesn’t require a down payment and doesn’t set a minimum credit score requirement. However, most lenders will require borrowers to have a 640 or greater credit score.
New community - What is HOA?
HOA- or Home Owner Association, is an agency created and paid to manage the community with certain guidelines mentioned in the community covenants.
HOA fees are paid monthly/quarterly/yearly. Although having an HOA may seem to be costly, these management companies usually cover a few home fees for owners.
My lease is up, how soon should I shop?
The market is HOT HOT!
With the market being extremely low on inventory, buyers are recommended to be more flexible when it comes to purchasing time. Due to low inventory, you may want to start early -such as 6 months in advance, or latest, 4 months before the desired move.