The 3.5% is only the downpayment. You will need 3-5% for closing costs, which inclulde lender fees, title fees, taxes, and prepaids. In addition, prior to closing you will need to pay for your home inspection, appraisal, possibly your homeowners insurance policy (some insurance agents will allow this to be paid at closing). There are several first time homebuyer programs available in Prince George's County right now that you may qualify for, which would help you cover your closing costs and possibly some of the down payment as well. Most have a limited amount of funds, so if you are ready to buy, I would recommend you move quickly. I'd be happy to share these programs with you and help you determine which ones might work for you.
Lisa Miller Scott
Sellstate Dominion Realty
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
I would feel better if you had a Loan Officer as well as a Buyers Agent. They can put your mind at easy and show you the numbers. Make sure that you get pre-qualified/pre-approved by your lender to find out exactly what your purchasing power is. "Keeping an eye" on a particular home is not a bad idea, just remember, EVEN if the price does drop down a bit, if the interest rates go up, they can cause you to have a higher payment even with a lower price.
Good Luck to you on your upcoming home purchase.
If you buy a 135k home you will need $4,725 for the downpayment. You will need roughly 3% or $4,050 to cover the closing costs. That runs from bank fees, attorney fees, setting up an escrow account and interest. Also one year of homeowners insurance paid at closing. It does not cover the home inspection which is around $300. You will need $8,775 roughly to get in the home. The seller can pay up to 6% of the closing costs and none of the downpayment. The 6% will be reduced soon to 3% by FHA. If you qualify for my first time homebuyer grant you can receive $7,500 as long as you have $1,500 of your own money. That can actually be a gift from a family member. IMO if you can't come up with $1,500 on your own though you aren't ready to buy a home. Hope this helps and please contact me directly for information on being pre-qualified and on my grant program. It does run out of money as most of them do. Thanks,