3 Homebuying Tips Potential Borrowers Need To Know
3 Homebuying Tips Potential Borrowers Need To Know
Before you start your homebuying journey, make sure you’re educated on the process.
Know what goes into a closing cost or the importance of your FICO? If you said no to either of those, here are some tips from Dave Jacobin, the president of 1st Mariner Mortgage.
Tip 1: Find out how much closing costs cost
All too often, I see borrowers stunned by the amount of the closing costs to finalize the purchase of their new home. Avoid this last-minute shock altogether and address closing costs well before you get to the table. When you’re pulling the contract together, know your options. If up-front closing costs are a problem, you can look into mortgage loans that work them into your mortgage payment to work around the up-front costs.
Bonus:Fannie Maerecently launched a program aimed at attracting more first-time homebuyers, the HomePath Ready Buyer program, under which qualifying first-time homebuyers can receive up to 3% of the purchase price of the subject property in closing-cost assistance toward the purchase of a HomePath property.
Tip 2: Know who is responsible for closing costs
Similar to the way many don’t understand the true cost of closing, they often are unaware of who is responsible for paying them. Be sure to communicate with the seller clearly throughout the home-buying process, as sometimes they will agree to assume the closing costs on behalf of the buyer in order to close the deal. Buyers should understand that even if they don’t have enough cash to cover both the down payment and closing at the time of sale, there are negotiable alternatives.
Bonus: According to ClosingCorp, closing costs are paid when a real estate transaction closes and the title to the property is transferred to the buyer, usually between 2-5%. The fees cover appraisal, inspection and attorney's fees to home warranties. ClosingCorp is working to emphasize the need to educate Millennials, and really all consumers, about the real estate closing process.
Tip 3: Understand the value of your credit score
Your credit score is crucial in determining your eligibility for mortgage loans, so don’t be surprised if you qualify for high interest rates if your credit score is low. If you’re planning on applying for mortgage loans in the near future, focus on paying off debt to build up your credit score. The strength of those three numbers will make or break your home-buying experience. Remember, it doesn’t matter if your debt is $24 or $24,000 – if your credit report shows you owe money, that is a reflection of how disciplined you are with making payments and how likely it is that you’ll be able to repay the mortgage.
If you would like to find out what the next steps are and start your home search give me a call!
Author:Deborah Boyd Phone: 940-368-1306 Dated: November 15th 2015 Views: 233 About Deborah: My family has lived in North Texas for generations so I personally know the residential areas of Fri...
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
General Inquiries: firstname.lastname@example.org
Office Number: 1 (800) 683-5651
Texas Real Estate Commission Consumer Protection Notice
More Americans Say Now is a Good Time to Sell! Recently relea
"As a first time home buyer, Yudy was able to explain everything beforehand and during process. She calmed our fears and made things smooth for us. I highly recommend if you're a first time home buyer."