Do You Really Only Need Down Payment to Buy a Home?

Do you only need money for a downpayment and nothing more?

Many new buyers think the down payment is what it costs to get those keys to a new home.  But is that all there is to it?  To obtain a mortgage,  it costs to service the loan.  There are origination fees, escrow, appraisal fees, title fees, prepaids, etc.  Collectively, these are called "closing cost."  And they are a buyer side fee.  Let's dive into this!

When structuring offers, buyers can ask a seller to contribute to the closing costs up to a certain amount.  

Depending on the market,  sellers will do so happily to get the deal to closing since they usually are receiving proceeds from the sale.  

It's not a requirement for sellers to contribute, but negotiating it into the deal does work often.  We are transitioning to a market where buyers will be asking for more upfront than in the previous 4 years.  

Sellers, if you want to sell, you will have to take into consideration what makes a buyer happy.  

Buyers, know that it is your time, and the market is favoring you.  Be firm in your request, let your real estate professional guide you, and get the best deal you can.  

3 Things to Remenber When Getting Ready to Buy...

1. Lender shopping is important.  Choose someone who will go over all fees UPFRONT.  Many lenders will not do thre deep dive to get you accurate numbers upfront.  And it usually will cause frustration once you are in contract because now you are stuck with whatever the numbers are or risk losing the earnest money.

2.  Choose a realtor that knows mortgages.  Your real estate professional should be able to answer general questions regarding the costs on a loan.  If you realtor doesn't like numbers, that is a red flag.  The goal is to understand how to get you to the costs that is comfortable for your family.

3.  Choose both a lender and realtor who work well together.  This is a team effort and communication and understanding is what you will need on this journey.  

If your goal is to buy a home in the next year, and you'd like to ask questions or keep up to date on what's going on in real estate, contact The Bowman Group

Leland walker with Liberty Home Mortgage is available for mortgage questions and to help you get started with your buying power.