What's Your Biggest Concern About Home Ownership?

Hello Hampton Roads,

During the last home buyer class I hosted in August, I asked the question "What's Your Biggest Concern About Home Ownership?" and most of the replies had to do with getting a loan from issues ranging from credit to how much money they would need for the down payment and closing costs. 

I thought I would answer some of those questions here to give you a preview of the information you can expect during the upcoming class held this Thursday at 7:30pm! Here's this link to register free:

https://freehomebuyerswebinar.com/ 

Credit:

What's the minimum credit score I need in order to buy a home?

Typically the minimum score will range between 620-640 for most loans but the higher your score, the better, as more loan programs and better rates will be available to you. It is possible to get a loan with a lower score, but depending on how low your score is, it may affect your downpayment and require you to put more money down.

Which credit score do lenders use?

Lenders will use the middle score of all 3 credit bureaus (Experian, Equifax and Transunion). For example if your scores are coming in at 660, 690 and 700, the middle score would be 690 as it falls between 660 and 700.  

Down Payment

How much do I need for a downpayment?

That depends on the type of loan you are getting. If you are using a low down payment loan like FHA or Conventional financing the minimum would range between 3%-3.5% of the purchase price. If you are using a VA or USDA loan the down payment would be zero (0%)  However, if you can qualify for  down payment assistance or 100% first time buyer loans, the down payment required would range from 0% to 1% of the purchase price depending on the type of program you are using. 

As every person's situation is different, I recommend scheduling a free buyer consultation to discuss your specific plans. 

Closing Costs

What are closing costs and how much do I need?

Closing costs are costs incurred over and above the sales price of a home. They include costs such as home owners' insurance, title insurance, settlement fees, lender fees, recordation fees, mortgage release fees, etc. An estimate of closing costs can range between 3.5% to 5% of the purchase price of a home and unless the buyer is getting closing costs assistance from the seller (which has been a rare occurance since last year) the buyer will have to bring these funds to closing. 

General

What's the best thing I can do to help myself buy a home?

Get educated on the process and work with experienced people you can trust. The more you know the better decisions you can make for yourself.

Save money! There are unexpected expenses that come up with buying a home so be as prepared as possible and have a little extra money on the side to cover expenses should you need it.

Once you are qualified for a loan, do not radically change your spending--wait till after closing to make any large purchases, D Continue to make timely payments on debts you normally pay, but don't payoff any large debt before closing unless you discuss it with your lender first.

I hope this helps and I hope you'll be able to join me this Thursday evening for the free online class!

Thanks for Reading,

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Want to learn more about buyng a house in Hampton Roads? Register for the upcoming Free Home Buyerr's Webinar: