Here's What You Can Expect To Pay When You Buy A House...

Good Morning!



Before you go out house hunting make sure you have enough money available to get your house closed.



...I know it sounds simple, but many people don't realize the amount of funds they will need available to get into a house.



Here is a simple breakdown of your out of the out of pocket costs you could expect by loan program.



1) VA: 100% loan. No down payment.



2) USDA: 100% loan. No down payment



3) FHA: Minimum 3.5% down payment.



4) Conventional: 5% minimum down payment. (except Fannie's Homepath has 3% down available).



...but you can expect more out of pocket than just the down payment. There are two other costs you can expect to pay when you purchase a home...



1) One, is prepaids. This is pre paid interest, taxes, and insurance. Typically your prepaids will run 1% to 2.5% of a sales price.



2) Then there is your closing costs... Typically closing costs (from all entities - title, appraisal, mortgage, survey, etc.) will add another 1.5% to 3% to a sales price.



Be prepared for these additional costs. However, there are a couple of ways to help you lower the closing costs and prepaid expenses.



The best way is to ask the seller to help you. However, there are limits to the amount the seller can help you, and it gets worse after April 5th because FHA max seller help goes to a cap of 3%.



Please talk to me before you ask the seller for any help. This way you will know what your options are.



If the seller refuses to help you pay your closing costs and pre paids - there is one other way to get help... I can help you! Go here to find out how... www.free-money-for-your-house.info.



I hope you have a good day today. Thanks for reading!


Brett