DON'T MISS A NEW LISTING AGAIN!

Register Now
Already registered? Login

FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!
*Contact Information is NOT Shared*

Quick Search


view all


Any

Any

No Min.

No Max.

Patricia Halpin

Patricia Halpin

Broker/Owner
Salt Water Realty of Brevard
Melbourne Beach, FL 32951

321-720-0409
Contact Me

Contact Me







* fields are required

Closing Costs - Home Affordability

Closing Costs

HOW DOES THE LENDER DECIDE THE MAXIMUM LOAN AMOUNT THAT CAN AFFORD

The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. According to the FHA,monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, 4 should total no more than 41% of income. The lender also considers cash available for down payment and Closing Costs, credit history, etc. when determining your maximum loan amount.

WHAT IS EARNEST MONEY HOW MUCH SHOULD I SET ASIDE

Earnest money is money put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or Closing Costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount.

HOW LARGE OF A DOWN PAYMENT DO I NEED

There are mortgage options now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you'll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you'll also need money for Closing Costs, moving expenses, and - possibly -repairs and decorating.

WHAT CAN I USE TO PAY THE DOWN PAYMENT AND CLOSING COSTS OF AN FHA LOAN

Besides your own funds, you may use cash gifts or money from a private savings club. If you can do certain repairs and improvements yourself, your labor may be used as part of a down 8 payment (called -sweat equity"). If you are doing a lease purchase, paying extra rent to the seller may also be considered the same as accumulating cash.



Patricia Halpin - Broker/Owner | 321-720-0409 | Contact Me
1009 Atlantic St. - Melbourne Beach, FL 32951
Copyright © , All Rights Reserved

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu