Home sellers have lots of options when is time to sell their properties, however there is no magic formula that will guarantee in achieving the best and highest price possible for their homes. This is why I like to partner with my clients to guide them through the complexities of selling their homes. I assembled a team of true professionals with experience, dedication and strong communication skills to help ensure a successful and profitable sale of your home. 

 

Today I want to bring a very important point that relates to the sale of your home, Study Shows Home Prices  3 Important questions To Ask Before Buying Your First Home in 2022

 

Before starting on the process of buying a home, most home buyers want answers to these 3 key questions: 

 

What is a down payment, and how much do I require?

 

A down payment is the money you pay upfront to get a mortgage. It’s based on the total amount of your home loan. If you are borrowing $300,000 and the lender requires 3% down, then you'll need a total of $9,000 for your down payment. 

To figure out how much of a down payment you may be required to pay when buying a home, it will depend on the type of loan you are trying to get.

 

For example, you can get a conventional loan with as little as 3% down

FHA loans require that you pay 3.5% down.

VA or USDA requires no money down. 

 

You will have to qualify on the type of loan you are trying to obtain based on your application and how much money you have to pay for a down payment.

The more money you put down for a down payment, the less your monthly mortgage payment will be.

 

 

What are closing costs and how much do I have to pay?

Unfortunately, a lot of first time home buyers believe that the down payment is all they have to pay when buying a home, 

Here comes the closing costs...

You are required to pay a down payment PLUS closing costs in order to buy a home. 

Closing costs are the charges you are required to pay before your mortgage is ready to fund the loan... for the house you are purchasing.

 

Typically, home buyers will pay anywhere between 2% and 5% of the loan amount in closing fees. 

This includes, money allocated for taxes, lender charges (points *), appraisals, inspections, insurance plus other costs.

 

The good news is that in most cases you can include part of the closing costs into your loan, depending on what type of loan program you qualify for.

 

In some other cases, you may ask the seller of the house to help you offset your closing costs charges by asking for a concession when your real estate agent sends your offer.  

 

For example, if your home costs $300,000, you could pay anywhere between $6,000 and $15,000 in closing costs. 

In this case, you may offer the seller $300,000 for their home and ask for 3% seller contribution to help you pay your closing costs.

 

In this example, the total amount you are really offering is $291,000 where $9,000 will be available for you to offset the costs of your closing costs. 

 

To learn exactly how much closing costs you will be paying?

 

 Ask your lender to provide you with an estimate of closing costs. They are obligated and required by law to do so. 

 

 

What are Loan Origination (points) Fees?

 

Part of your closing costs involves any charges that come from the lending company in the form of "loan origination fees (points) and other loan charges" 

 

These fees and charges range from 0% to sometimes up to  3 percent of the amount borrowed. 

Lenders generally charge these fees for things such as the appraisal of the property, pulling your credit report, preparation of your loan documents, and the processing  of your application, as well as charging a loan origination fee, which may be 1 or 2 percent of the loan amount. I know that this seems like a lot of charges just to get one mortgage loan... remember, the lender has to charge some of these fees to stay in business and my recommendation is to check these fees with your real estate agent, that way, you will be sure that there are no added charges above what is expected in general 

 

 Remember, if you’re strapped for cash, you can get a loan that charges no fees; however, such loans have much higher interest rates that will increase your monthly payment substantially.

 

There are many opportunities for growth in the current real estate market. To find out what’s right for your family, let’s get together to help you understand your options and guide you toward the best decision,

 

To purchase your dream home or a great foreclosure property, is about being educated, thorough and patient with the process. The most important aspect of finding the perfect home is working with a real estate agent who is highly skilled in negotiation and understanding of your expectations!  

 

For more information or assistance to help you find a home in the Las Vegas and Henderson area please call us at 702–845–8540