Tag: #HouseBuying

How much do I need to buy a house?

The usual expenses associated with the purchase of a house are down payment, closing costs and other expenses.

  • The down payment can be anywhere from 3% to 10% for a primary residence, it will depend on the type of loan you can qualify for, fully documented loans, such as a conventional loan and a FHA loan (Government backed loan) have a down payment of 3% and 3.5% respectively, of the purchase price.

Example: If the house price is $200,000 and you got approved for a conventional loan, the down payment would be $6,000. If you have a FHA loan approved for the same $200,000 house, the down payment would be $7,000

  • Closing costs can be between 2% and 5% of the home value, it will include the title company fees, transfer taxes, doc stamps and prorated property taxes.  It is possible to get some concessions from the seller towards your closing costs, this is something your Realtor will advise, handle and negotiate on your behalf.
  • Other expenses associated with the purchase of a house are the home inspection ($300 – $400), well and septic inspection if needed ($200 to $400), Engineer structural inspection ($250 – $300), survey (depending on the size of the lot, starts at $300), appraisal ($450 to $650, the lender requests it)

As you can add up, it is necessary to have a good chunk of money to buy a house; however there are programs available to help you with the down payment and closing costs for first time home buyers as well as loans with 0% down payment as the USDA or VA. It is important for you to work with a Realtor who can provide you clear advice and resources so you can accomplish your dream of home ownership. Give me a call, I will be happy to help you.

Clarisa Moody

813 446 2003

If you like this blog entry, make sure to subscribe to my Newsletter and you will receive interesting information about Real Estate, finances and home management.

www.ClarisaMoodyRealtor.com

Debt to Income Ratio

The DTI is the Debt To Income ratio, is used by lenders to establish your ability to repay the loan. Remember, your credit worthiness is based on your credit score and both go hand to hand when you are trying to qualify for a mortgage.

Your income is confirmed with your paystubs and tax return, while your debt is confirmed through your credit report. The ideal DTI to qualify for a mortgage is 50% or less (there are exceptions but let’s keep it safe).

Examples of 2 loan applicants, they both make the same amount per month, but they handle their finances different. The first one possibly won’t qualify for a $1,200 mortgage while the second one will do for $1,500 easily (House priced at $250,000 – $280,000).

www.ClarisaMoodyRealtor.com

Make sure you have your debt under control and make your house buying goal a priority. Remember, sometimes –“ We buy things we don’t need with money we don’t have to impress people we don’t like” Dave Ramsey

Are you ready to buy your dream home? Give me a call, I will be happy to guide you.

Clarisa Moody

If you like this blog entry, make sure to subscribe to my Newsletter and you will receive interesting information about Real Estate, finances and home management.

www.ClarisaMoodyRealtor.com

10 TIPS for First-Time Home Buyers

Buying your first home is a big deal; therefore you have to prepare for it and make sure you are ready to success!

Here is are 10 tips for First Time Home Buyers

  1. Make buying your house your objective and set a timeline to achieve it
  2. Get in touch with a Realtor, it is free and you will have a professional on your side, I will love to help you buy your new home 😉
  3. Make sure you meet the minimum loan requirements for the loan before applying
  4. Save, save and save for your down payment, closing costs and other expenses
  5. Get your loan pre-approval before you go see houses
  6. Make sure to keep your credit score high during all the process
  7. Do not commit to any new debt in the home buying process period
  8. Look actively for a property, I recommend the app Homesnap, you can interact with me directly through it and send me your favourite houses
  9. Unless you buy a new construction, there are things that won’t be perfect at the house you like the most, a bit of compromise will be necessary
  10.  Follow your Realtor advise and make all the questions you want before and during the process

Are you ready to start? Give me a call and we will work on your house buying plan

Clarisa Moody – 813 446 2003

If you like this blog entry, make sure to subscribe to my Newsletter and you will receive interesting information about Real Estate, finances and home management.

www.ClarisaMoodyRealtor.com