Know These 10 Things Before Purchasing a Home

By
Real Estate Agent with Bennett Realty Solutions MD#634275
https://activerain.com/droplet/52k2

Know These 10 Things Before Purchasing a Home

 

1.  Before you start looking for a home, get pre-qualified for a loan.  Banks, credit unions and mortgage bankers make home loans; mortgage brokers process loans through a variety of lenders.  The lenders will take an application, process the loan documents, and see the loan through to the funding stage.

2.  If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit.

3.  You will need a down payment. Downpayment requirements vary depending on the type of loan. You may also qualify for federal or local down payment assistance.  Consult a Realtor.

4.  You will need funds for closing costs. Closing costs are charges for services related to the closing of your real estate transaction.  They include, but are not limited to: Escrow fees, title policy issuance fees, mortgage insurance fees, fire, flood, and homeowners insurance, county recorder fees, and loan origination. Consult your lender for an actual estimate of their costs.

5.  Some loans have "points" and some do not,  A point is a loan origination fee equivalent to 1% of the amount.  Together with the interest rate, they constitute the yield on your loan for the lender.

6.  Mortgage rates can be fixed or adjustable.  Which one is right for you depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home.

7.  There are two main types of loan categories.  Conventional mortgage loans are available with fixed or adjustable interest rates.  Government loans include FHA fixed and adjustable rate mortgage loans, and VA fixed rate mortgage loans.

8.  If you are a low-to-moderate-income homebuyer, there are special programs designed to help you (check our some of my previous blog posts to learn about the current ones available).  These loans are available through private lenders, as well as local and state housing agencies.

9.  You may have to pay mortgage insurance.  Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Mortgage insurance is always required on FHA mortgage loans.

10.  Many organizations offer home loan counseling to prospective homebuyers.  They will cover home selection, REALTOR services, lenders, loan programs, homeownership responsibilities, saving for a down-payment, and other important pieces of information.

 

Posted by

Diana White-Pettis, Associate Broker

Exit Bennett Realty

7701 Greenbelt Rd. #100

Greenbelt, MD  20770

Office: 301-459-5040

Cell: 301-502-2669

Direct line: 240-386-1309

Email: dwhitepettis@gmail.com

Website: www.diana4yourhomesdesire.com

 

Turning Your Homes Desire into a Dream Come True!

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Topic:
Home Buying
Location:
Maryland Prince George's County Upper Marlboro
Groups:
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Realtors®
Tags:
homeownership
mortgages
fha
loans
prequalification
conventional
va
prince georges county md
diana whitepettis
homebuying preparation
know these 10 things before purchasing a home

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Rainmaker
1,607,649
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

Great post and covers a lot of details I wonder if there are any 100% loans left don't hear much about them anymore. 

Mar 17, 2017 04:41 AM #1
Ambassador
3,501,337
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Very good tips, Diana!  The various programs that lenders have to offer (especially first-time homebuyers) are often over-looked when buyers only interview 1 lender who directs them to only one product.  There are lots of great programs out there - buyers really need to know everything that is available to them before they decide upon a lender.  

Have a great evening!

Mar 17, 2017 09:50 PM #2
Rainmaker
1,607,649
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

The lenders tell us there is always a way but I have not found it

Mar 19, 2017 06:23 AM #3
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Rainmaker
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Diana White-Pettis

GRI, CDPE, CNE, WHC Upper Marlboro Homes for Sale
Are you looking to Buy or Sell with First Time Success? Call me!
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