comes to buying a home, it’s important to be prepared for all the costs that
may come up and making sure that you are able to afford it. Most future
homeowners tend to focus on acquiring enough money to cover the down payment
but are then taken back by the closing costs that they need to cover at the
end. It’s critical to be aware of how much money you’ll need to fully close the
deal on your new future home. In this month’s blog, we will discuss the
difference between down payments and closing costs to help better prepare you
for the home buying process.
payment is the portion of the money you must pay upfront when you begin the
process of purchasing a home. It is the minimum amount that you need to put
towards the total cost, while the remaining amount is funded by your mortgage
loan. This is basically your first investment into your future home and the
price may vary depending on what type of loan you have. Another important thing
to remember is that your down payment will be due at closing, which is the
final step for buyers when the sale is finalized.
costs occur when the title of the property is transferred to the buyer and the
total amount will depend based on the location of the property and its value. The
amounts associated with your closing costs consist of an assortment of taxes
and fees from entities and services handling your loan. All of your closing
cost fees will be listed on your loan estimate. These costs are completely
separate from your down payment and are paid at closing. They can also be paid
on the same check as your down payment.
costs can be incurred by both the seller and the buyer and the fees can be
split depending on the negotiation and contract. A mortgage lender can help decrease
these costs by negotiating the sales contract.
process of buying a house as a first time homeowner can be tedious and
stressful. There are many fees associated with it and the terms can be
confusing. That’s why at American Mortgage Resource, Inc., we dedicate
ourselves to helping homeowners while providing worry-free solutions that best
fits their needs. To consult with an expert, please contact us at (617)
972-8588 or visit our website for more information about our
Being a first time home buyer has never been more confusing
and convenient at the same time. The
most crucial aspect to home buying, for first time buyers especially, is
adequate and thorough preparation. In this month’s blog we discuss a few ways
first time home buyers can qualify and get approved for an affordable mortgage
at a great, low rate.
Strengthen Your Credit Score
Typically, establishing and strengthening a credit score can
take years of effort, however there are several steps you can take to give it
an impressively quick boost. You can finesse your credit score today by
disputing any damaging errors in your report, keeping credit debts at or below
30% of their limits, making all payments on time, and for some opening a new
line of credit can help too. Keep in mind that in addition to analyzing you and
your partner’s credit scores, lenders will also consider your income-to-debt
Save, Save, Save!
The best tip for first time home buyers is to save as much
cash for a down payment as possible. The higher the amount put forth the better
chances a first time home buyer will get approved with a competitive rate. Plus,
the cost of the down payment isn’t the only expense to consider saving for, as
there are often significant closing costs and move in expenses involved with
home buying as well.
Explore Mortgage Options
In recent years more and more programs have become available
to make home buying attainable for more first time buyers. These programs will
often allow new buyers to qualify for mortgages with down payments as low as 3%
down. First time buyers should be aware that some mortgage brokers will only
accept these types of loans when private mortgage insurance (PMI) is also
American Mortgage Resource is a home mortgage broker that
specializes in home loans for first-time buyers, with very competitively low
mortgage rates in Waltham, MA, the Boston area, and the entire state of Massachusetts.
Despite your individual circumstances we will help you qualify, apply, and be
approved for the right mortgage loan for you. Contact our team today for more
information by visiting our website or
calling us at (617) 972-8588.
Are you in the process of buying a new home? When you’re talking to real estate agents and lenders, they are probably using terms in conversation that you have never heard before. You may hear terms such as “closing costs” and “escrow”, which is why it’s important to know some basic mortgage vocabulary so you don’t have to ask too many questions. In addition, purchasing a home is a big commitment, so you want to understand exactly what’s going on. In this blog, we discuss five mortgage terms you should know!
When you are making equal payments towards the principal and
interest, this is called amortization. You are essentially paying towards the
interest in the beginning of your payments, but as the loan gets smaller, less
interest is charged. It’s a gradual reduction of paying your debt over time.
The money you need to close the mortgage deal is called
closing costs. These costs include everything from title insurance and escrow fees
to lender charges and transfer taxes. FYI: All closing costs will be listed on
the loan estimate that the mortgage lender gives you within three business days
of your application.
Equity is the difference between what you owe on your home
and the current market value. As you pay your mortgage, the equity grows. You
can tap into this value over time. For example, you can apply for a home equity
loan, a home equity line of credit or a reverse mortgage.
“Escrow is a legal
arrangement in which a third party temporarily holds large sums money or
property until a particular condition has been met.” In real estate, escrow is
used to protect the buyer’s deposit so the money goes to the right party
according to the conditions of the sale. It also holds a homeowner’s funds for
taxes and insurance.
Title insurance guards against any disputes about the title,
such as contractor liens or tax. It is a way for lenders and owners to protect themselves
from financial loss and other related legal expenses.
At American Mortgage Resource, Inc., we are here to guide
you through important financial decisions when it comes to buying a home. Let
us help you with the home mortgage process and contact our team of
professionals. Call us at 1-617-972-8588 or send us a message online!