When looking to buy a home, how much you need to save and where to find that information can feel overwhelming. It’s important to have a trusted professional like Dennis Hartley help you understand it all. To begin, the following is a good start.
Down Payment. Setting aside this is likely already top of mind. Per the experts, the need for 20% of the home’s price is not always required. In some situations, you may put down as little as 3.5%. Partnering with Dennis Hartley to review various loan types, down payment assistance programs, and all requirements is a wise move.
Earnest Money Deposit. In today’s highly competitive market this sum - as a show of serious intent and good faith - can help your offer stand out in a bidding war. This deposit works like a credit, and the amount depends on various factors. On average, it is 1-2% of the total home purchase price. Upon closing, this sum is typically applied to down payment or closing costs.
Closing Costs. Defined as the upfront fees charged in connection with a mortgage loan transaction, they are basically costs to cover fees for people and services involved in your transaction, i.e., loan origination fee, title costs, survey, attorney, escrow fees. Buyers are notified in advance of fees prior to closing on a mortgage, and are advised to budget in advance for about 2-5% of purchase price.
It is crucial for buyers to understand all of the costs associated with the homebuying process in advance. Connect with Dennis Hartley for reliable expertise on everything to expect when buying a home.