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FINANCING DETAILS WHEN PURCHASING A PROPERTY
Before going out searching for a home, you should get pre-qualified for a loan
Shopping for your mortgage is as important as shopping for your home. The rigth loan can save you thousands of dollars.
Before appliying for a loan a lender can determine how much money you can barrow. While it does not constitute a commitment for the lender to make a loan, this process can help you determine the price range of properties to search for.
Once you find the home you want to purchase, you apply for a loan.
Applying for a loan
When you apply for a loan, your lender will review your credit report.
Your credit report will be measured as your credit score. The highest the credit score the better. You will have more options since you will qualify for a greater variety of loan programs at better rates.
What type of mortgage to choose?
Before making a decision, you should discuss with with your loan officer what program best fit your needs.
Down payment vs Closing costs
It is money that you give in advance that reduce your loan balance, the biggest your downpayment the less money you owe to the lender.
Closing cost are fees involve with the home sale such as lender processing fees, title company fees for handleing all paperwork, local goverment recording fees, and some other fees incurred in the transaction. Tipically the closing costs are 2% to 5% of the home purcahse price.
Here is a list of main closing cost
Do not worry about all fees when buying a property bacause some of these fees can be negotiated to be paid by the seller or can be financed.
Florida Real Estate Licensed