Many buyers don’t realize that in addition to your downpayment, you will need to have money to also cover closing costs, which typically range from 1% to 8% of the sale price of a home, depending on where you live. Your lender will provide you with a detailed estimate of these costs so you are prepared for the total amount required to close your purchase. If you are planning to make a 20% downpayment, that means you’d really need 21% – 28% of the home’s purchase price to cover all the costs, which can take a long time to save. Luckily there are loan options available with as little as a 3% downpayment, which means you’d only need 4% – 11% of the home’s purchase price to cover costs.
When a great opportunity comes along, you may not have to miss out on getting the home of your dreams. Mortgage insurance can help you achieve the dream of homeownership years sooner. Make sure you”ll ask your mortgage broker about it, just in case you need it. Mortgage Insurance (also known as mortgage guarantee and home-loan insurance) is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer.
The qualification process takes into consideration income and credit history, but there are other factors you needed to consider to decide what you could actually afford.
Being pre-qualified for a home is a like having a credit card. You get a limit on what you can spend, but it doesn’t mean you can afford to max it out. It’s important to take a look at all your monthly expenses, both mandatory and discretionary, to determine how much you really want to spend on your mortgage each month without giving up the things that matter to you.
Make sure you are 100 % certain about what you’re getting yourself into financially, talk, ask, talk to your mortgage broker before you even find the house of your dreams..
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