Alabama Land For Sale-What To Expect With Earnest Money And Down Payments

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Whenever you buy Alabama land for sale there are constants in the purchase process you must be ready for and know their place in the process.

Knowledge is power; you have heard that statement your entire life well let me tell you it is always true. If you are in the market to buy Alabama land for sale and you are not a seasoned buyer take the time to learn the process. When you find your land or house the first thing in the buy sell process will be the earnest money and contract. I will always suggest finding yourself a reputable and well experienced Licensed Real Estate Broker or Agent; a good Agent will be able to guide you through this process. If you choose to go this alone know what is standard in the industry. The earnest money or deposit is what you will give the seller to secure time to complete the purchase process; this money will be deducted from the overall purchase price of the land or home. The amount of earnest money will vary depending on what type of property you are buying like vacant rural land, single family home, condo and so on.

After your earnest money is put down on your Alabama land the next part of the process is down payment, this is where in today’s market things start to get a little sticky and is typically the biggest challenge for buyers. A FHA loan has only required a 3.5% down payment in the past but congress is now proposing a new amount through the Qualified Residential Mortgage (QRM) which will make pretty much everyone put down 20%. I believe this could over the long haul be a good thing however according to research over 60% of recent home buyers put down less than 20% on their new home purchase. This is will have several effects to the housing market, you can believe it will slow down sales, make it take much longer for the average American to purchase a home and flat out put many out of the housing market altogether.

There are different ways to handle the down payment on your Alabama land for sale or your home purchase. Needless to say you are going to have to come with some money and I will suggest here again if you do not have six months of living expenses and are debt free other than the house future loan of the house or land you are looking to buy I would wait, wait until you have yourself in good financial shape to make this life changing commitment. If you buy what you hope will be your dream home and you are not financially ready your dream home or land could end up being a nightmare and could ultimately be your financial downfall. 

Everyone wants to buy Alabama land for sale or their first house but if you have never done either of these the financial cost associated with the purchase and after the purchase can make it impossible to sustain you living lifestyle and ultimately bring on financial ruin, be financially prepared and let your Alabama land be the joy you are looking for.


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