We work with all kinds of people in our business, there are a couple a things we notice about every single client we meet with to get a home.
The first is that all of them want to live the dream of home ownership, the second, is that everyone has questions about the home loan process especially dealing with Closing Costs vs. Down Payments.
One of the biggest questions we get has to do with the big day - closing day. Everyone wants to know how much money they'll need to bring when they are getting their house, and that's okay, we totally understand. You need to know how much money to bring and more importantly how much money you're going to spend! This is why it is helpful to know the difference between Closing Costs vs. Down Payments.
Closing Costs typically cover the costs of services rendering while wroking on your home loan. This is where your lender fees will be and any other fees associated with the mortgage. (IE - appraisals and inspections) You will always have closing costs unless you're allowing the seller to pay these in the agreement you've made to buy their home.
Down payments are the beginning of your investment into the home you're purchasing. It's the same as a down payment on a car or a boat, just in this case it's for a house.
So why do you need to know the differences between ?
We specialize in VA Home Loans and USDA mortgages. Each of these loans best feature is their no money down benefit. The means with a VA loan you don't have to bring a down payment and the same is true for the USDA loan. Where people get confused is that although you don't have a down payment you WILL still have closings costs, even if it's called a 100% financed home loan.
We hope that clears up any misconceptions you have about your home mortgage! If you're interested in getting your own home with a mortgage through Leader One Financial please apply online at our safe and secure website: KC Loan Tips Application. or call us at (816) 268-4025 and we'll be happy to answer any questions!