Home affordability indices are up; interest rates are steady...
You've heard all the news. And you're thinking NOW is a good time to make that move. But who can you hire to represent your interest and guide you through the real estate process? Hire an ABR REALTOR with a Accredited Buyers Representative designation. This realtor knows how to grasp and understand the buyers' specific needs and local market conditions as well as how to navigate the real estate transaction successfully. With an ABR, you can find the house that will be your home.
Buying a house can be the largest purchase you’ll ever make. That’s why very few prospective homeowners have enough cash on hand to purchase a home outright. Instead, most home buyers seek financing—a mortgage—to cover the difference between what they’ve saved and what they need to purchase a home.
Determining how much house you can reasonably afford, and the size of your mortgage payments, requires carefully evaluating:
Savings—how much have you set aside to cover a down payment on your home, as well as your closing costs?
Affordability—how much can you safely borrow, and still meet all your financial obligations?
Our trained buyer’s representative can answer all your questions about factors to consider in evaluating your financing options and determining a reasonable price range for your home purchase.
Closing costs are simply the fees associated with 1) purchasing a home, 2) borrowing money, and 3) preparing paperwork to finalize the sale. Your total closing costs will vary depending on where your new home is located, what type of property you are buying, the price of your home, and the complexity of the transaction.
It is extremely important that you work closely with your buyer’s representative in the early stages of your home search to estimate what these costs could be, since closing costs can easily represent thousands of dollars.
The main categories are:
DISCOUNT POINTS TO BUY DOWN THE MORTGAGE
If you want to reduce the ongoing cost of your mortgage over the life of the loan, you’ll want to consider this optional fee. Amounts can vary significantly, from 0.5 to 3 points on the total mortgage amount. This is a one-time charge that is fully deductible as mortgage interest. Speak with your accountant to get a better understanding.
COSTS FOR ORIGINATING THE MORTGAGE
This generally includes a variety of fees such as the loan origination fee, the appraisal fee, and the cost of credit reports. Other related closing fees may include hazard and mortgage insurance, and interest accrued on the mortgage between closing date and the end of the month. Your ABR Realtor will explain in more detail.
TAXES AND OTHER LOCAL FEES
Charges will vary according to local government requirements. Some may demand that property taxes be prorated according to when you officially own your home. You may also be required to pay personal property taxes, homeowner’s association dues, and other assessments that are specific to the area that you are moving into. Your closer will advise you of those cost.
You will have to pay for any research involving public records and title history for your new property. This insures that the title is unencumbered by other ownership claims or liens and can be delivered to you at closing. Other costs include recording and transfer fees, which will cover legally recording the deed to your name
Neighborhood Assistance Corporation of America
"NACA" is a non-profit, community advocacy and homeownership organization. NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership. NACA has made the dream of homeownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home or modify their predatory loan with far better terms than those provided even in the prime market.
The first step in NACA’s "Ten Steps To Home Ownership" is to sign up for a free NACA Workshop near you. At the four-hour workshop you will learn the details about the NACA program and the home buying or refinancing process.
Here you can choose one from the list of professionals:
First Home Mortgage
804-897-1122 ext. 4909
Wells Fargo Home Mortgage
Show me the MONEY!
All buyers weather first-time or seasoned are always looking for down payment assistance, closing cost assistance, or grants to purchase real property.
See a list of resources that can help guide you:
In this brief video, Julie Howarth from network member UNHS NeighborWorks HomeOwnership Center in Utica, NY, clears up myths and gives homebuyers the real scoop on buying a home. Check it out!