Friday, August 14, 2009
If you are a First Time Homebuyer and you are interested in the slightest about purchasing a home, NOW is the time. The clock is ticking down. The deadline is November 30, 2009 so that means you need to get in to see your lender TODAY and get pre-qualified, then go shopping for your home. Although the lending requirements have changed over the last 24 months, believe it or not banks are still lending money. FHA is still probably the most attractive program for someone purchasing a home for the first time who does not necessarily want to pay all of their down payment, pre-paids, and closing costs out of pocket.
Wells Fargo's First Time Homebuyer's Guide defines these as:
Down payment - Money paid to make up the difference
between the purchase price and the mortgage amount.
Prepaids - Closing costs related to the mortgage loan which
are collected at or before loan closing - including per diem
prepaid interest and initial deposits of monthly escrows of
taxes and insurance.
Closing costs - The costs paid by the mortgage borrower (and
sometimes the seller) in addition to the purchase price of the
property. These include the origination fee, discount points,
appraisal, credit report, title insurance, attorney's fees, survey,
and prepaid items such as tax and insurance escrow payments.
If you require additional information, check with your lender, getting a home loan is a process, however, it does not have to be a difficult process if you find the right guidance. Give me a call or visit my website if you would like me to assist you.
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