How Much Money You'll Need To Get A Loan On A House...

 Good Morning!

I’ve written about this before, but it’s important, so I wanted to touch on it again.

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

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

Here is a simple breakdown of your out of the out of pocket costs you could expect from the 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, or 3% down.

…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 prepaid interest, taxes, and insurance. Typically your prepaid will run 1% to 2.5% of a sales price.
2) Then there are 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.

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett

Get Pre Approved For A Loan Here
My Previous Blog

Two Most Common Questions we get on Reverse Mortgages...

 Hello!

I wanted to address the two most common questions that I get regarding reverse mortgages…

Question: What happens if I die? Will the lender be taking my house?

Answer:   No. After you pass away, your heirs may pay the loan balance in full with cash or by refinancing the debt and they can keep your home.

Question: What happens if the loan balance becomes greater than the value of my home?

Answer:  No matter how large the loan balance becomes, you have the right to continue to live in the house. The lender cannot take over your home as long as it is your principal residence. Besides, you will NEVER owe the lender more than the value of your home. HUD will pay the shortage for you, if there is any.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

Get Pre Approved For A Loan Here
My Previous Blog

Credit Tips For you...

 Hello!

A good credit strategy is important. Knowing simple things to implement to improve your credit scores is half the battle.

Here are a few easy ways to improve your credit scores…

1) Did you know a single credit card late payment can ding your score by as much as 60 points?

a) Helpful strategy – set your payments up on autopay.

2) The quickest way to increase your credit scores is to decrease your credit utilization ratio. This is the amount charged on your accounts versus their total limit.

a) Best ratio is 10%. Certainly don’t go over 50%. (If limit is $1,000 try not to carry more than $100)

b) Another strategy is to ask for a higher limit to get your ratio more in line.

3) You can gain credit score points by paying off the credit card whose balance is closest to its limit. However, don’t cancel the account after you’ve paid it down.

That’s it for today!

Have a good day!

…and thanks for reading.

Brett

Get Pre Approved For A Loan Here
My Previous Blog