You’re probably wondering how much money you need in order to buy a home? When determining this, we look at the down payment requirements for your loan type and any closing costs associated with the transaction.
Let’s start with down payment. The amount of down payment required varies from loan product and can also change based on the expected occupancy. Some loan products allow no down payment (VA and USDA) where other loan products range from 3-5% down (Conventional and FHA).
Closing costs are the one time fees you pay in order to close your loan and purchase a property. These include costs for the appraisal, title work and title policy, government and recording fees, and prepaids for taxes and insurance. Certain property types may require additional verifications that can increase the amount of closing funds needed.
When looking to qualify you on your home loan, we look at the down payment plus closing costs and that’s the amount money we’ll need to verify. If you’re short on funds, we can look at potential lender credits for certain interest rates or even closing cost credits from a seller.