How much money is needed to buy a home| Laveen Arizona
Are you a potential home buyer and wondering how much money is needed to buy a Laveen Az Home? You are not alone, there are many first time home buyers that are interested in buying a home, but do not really understand what is needed or the process to be able to purchase a home. Rest assured the process is really not that difficult, and it only will take a couple of minutes in reading this short article to understand how much is needed to purchase a Laveen Az area home.
So let’s begin with what kind of credit is needed to purchase a home in Laveen. Currently many lenders are looking for a median credit score of 640. How does one find out what their credit score is? Best thing to do is talk to a lender in which case they will pull your credit and review the results. So long as you’re 640 or more, you should be financeable. I am not a lender, but I can tell you there is likely some loan programs that will work for folks under the 640 credit score. If you’re under that credit amount, ask lender for what choices may be available. The 640 or more is really just a norm for what most lenders appear to be looking for at this time. Once lender reviews your credit, they will also look to verify and review your income and debt. Ideally lenders are looking for a debt to income ratio that is below about 43%. As a very simple example, if someone earned $1000 a month, lender would like to see all debt (including new loan being considered) to be under $430.
So you’re qualified for a home loan now what? Generally the lender should review your financial situation, explain the loans you may qualify for and what the costs and benefits are of each loan. Below are a couple of the more popular loans:
FHA Loan – Many home buyers recently have liked using FHA financing. This type of loan is backed by the federal housing authority, a branch of our government. Popularity for this loan comes in the fact that it only requires a 3.5 % down payment, with ability to finance 96.5% of the home. As a very simple example, a $100,000 home purchase would then require a $3500 buyer down payment and the lender would finance the balance $96,500.
VA Loan – This is a veteran’s loan, which of course as the title suggests is open for veterans of the United States. This is backed by the government as well, and the very best thing is that this type of loan allows for 100% financing. Out of all loan types, this is the least money down one can get!!
Conventional loans – Conventional loans are made without the backing of a branch of the government, basically what we call a non-gse loan. There are different types of requirement and or down payments for conventional loans, but currently we are seeing a minimum 5% down payment on conventional loans.
These three are the most commonly used loans. Regardless of which loan a buyer decides to use, keep in mind there will be fees associated with the purchase of a home and the loan which is used in the purchase. For instance a rule of thumb on closing fees will run about 3-4% or purchase price. This is really a good rule of thumb around laveen Az and South Phoenix. In dollars generally it is about $3800 to $5000 depending on lender and their fees.
Other costs that a buyer in the Laveen south Phoenix area should keep in mind when buying:
1. Appraisal fee, currently about $500
2. Home inspection fee, varies but about $250 - $350
3. Termite inspection about $60
There is a lot to know but your area realtor can be sure to explain it and walk you through the purchase process. It is a great time to buy right now, interest rates are under 4% at this time, which means your dollar goes further, so more home for your money. Also your realtor should be able to help negotiate the best offer, and maybe save you some of the fees generally paid by a buyer. If negotiated properly a realtor can save you easily $3,000 to $5,000 on your next purchase.
Shoping for a Laveen Az home should be fun, so get to shoping. You can view homes available in Laveen for Sale right below.
http://www.laveenarizonahomesforsale.com/community/area/Laveen%20Arizona/
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