Huntingdon Valley Mortgage Brokers
How can Huntingdon Valley Mortgage Brokers help in buying a home?
There are a lot of things to consider before buying a home. How long am I planning to stay at the property? Do I have enough money for the deposit, down payment, and closing costs? How will I finance the home after that?
Huntingdon Valley Mortgage brokers at Dynamic Funding Solutions are here to help you answer these questions and more. With our guidance, you will have the knowledge and support to choose the loan that is right for you.
Necessary Requirements To Purchase a Home
In order to buy a house, an individual likely needs to have some money in their bank account. Some of the essential requirements are:
- Deposit or the earnest money
- Down Payment or the closing costs
Deposit or the earnest money
The first significant expense will be the deposit, also known as earnest money. The buyer’s contribution of the deposit shows that they are serious about entering the deal and protects the seller in case of a withdrawal. Earnest money is typically 1-3% of the sale price and is held in an escrow, or independent third party, account until the sale is complete.
If it goes through, the deposit is applied toward the down payment or closing costs. In instances where the deal is terminated for contingencies included in the contract, such as a failed house inspection, the money is returned to the buyer. Otherwise, the seller keeps the deposit.If everything goes smoothly and you reach the settlement, the rest of the down payment and closing cost fees will be due.
Down Payment or the closing costs
A down payment is the part of your home’s cost that you pay upfront, and a mortgage is taken out for the other portion. If your down payment is 20% or more of the house’s cost, you are exempt from buying private mortgage insurance (PMI), which typically adds another 0.5-2% of your loan balance per year.
Your mortgage broker in Huntingdonvalley may help you to get a lower interest rate if you pay more upfront, potentially reducing your costs in the long-term. Your final down payment price will depend on the value of the home and your loan program.
How closing costs can pave a way to your ownership?
Closing costs are the expenses excluding the cost of the property that are incurred during a real estate transaction. These may include origination of the loan, title insurance, escrow, and more.
The costs are typically 2-5% of the purchase price but may vary state to state. While some lenders may allow you to include these into the mortgage payments, it is important to consider the increased amount that you need to pay.
Need a New Home? Contact Huntingdon Valley Mortgage Brokers today
Now that you know a little more about what to expect when buying a home, you are ready to begin considering some options.
Huntingdon Valley Mortgage brokers are experts in the field of home mortgages. They work with borrowers to find the best possible loan for their needs.