Let me know if you need help,
Happy house hunting.
I am going to chime in here with some additional thoughts.
There is a difference between what you can qualify for and what you are comfortable living with. You do not want to be married to your home - and you will want to look at the total cost of the loan as well as the monthly payments. Only you really know your budget.
Owning a home does come with expenses that you will want to account for. You may need some new furniture, some money to decorate (paint, fixtures, landscaping etc.) and will want to set aside some money for maintenance (Plumbing problems etc.) You will want to have enough to cover your othe financial obligations (car payment, student loans, credit card payments etc.) and you will want to live life beyond groceries and utilities.
I applaud you for asking a great question and wish you well in your home search. And remember - change your heating/air conditioning filters at least twice a year :-)
It really depends on what loan program you use and what home you buy. For example, if you buy a bank owned home in Prescott Valley that qualifies for a USDA loan, your down payment may be as little as 0%. Closing costs will be around 3% of the value of the home. There are several homes that I am aware of in the Prescott Valley that are great deals. I can get you to a great local mortgage consultant that can give you free advice and pre-qualify you to give you a good idea of what you will be spending.
I am Realtor in the Prescott Area. My office is near downtown Prescott. Give me a call if you need further assistance.
Congratulations on deciding to buy. Down payment amount will depend on the loan programs available to you. VA, and USDA offer Zero down loans, but you must qualify for these programs. FHA requires as little as 3.5% of the purchase price. Conventional financing is available in many areas between 5% & 20%.
Closing costs can be as little as Zero as well, but 2-3 percent is most common. You'll need to meet with a lender who can discuss your credit and qualifications for the various programs to advise what may be possible for you. A good Real Estate agent can help structure your offer to request the seller pay a portion or all of your closing costs in conjunction with your lender. Best of luck home buying.
There are lender fees, title fees, and an escrow account that are your taxes and insurance. Good Luck!!
Licensed Loan Originator
Amerifirst Financial. Inc.
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All the best!
Congratulations on your decision to by a home.
Kyle is correct that you can get an FHA loan with only 3.5% down. You are also eligible to receive up to 6% of your purchase price from the sellers to pay your closing costs, although you shouldn't need the entire 6%. Be sure to let your real estate agent know that this is something you want to do if you would like the sellers to pay your closing costs.
I see that you are from Prescott Valley. If you are planning to buy in Prescott Valley, you may qualify for a USDA loan where you can go in with $0 down.
Both of these loan programs are very good, but there are advantages & disadvantages to each. I work for a mortgage bank in Scottsdale that underwrites and funds both of these loans. The USDA loan does require their final approval.
Please feel free to contact me. I'd be happy to help you with any questions you may have.
All the best,
Roswell Moore, CMPS
Certified Mortgage Planner
We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund, in-house, FHA, 203(k), VA, USDA, Jumbo, Conventional, loans to Canadians, Australians & other Foreign Nationals, on time. NMLS ID 263779 | AZ BK 0903725
Buyers market, find a good local Realtor and they will answer all these questions for you and the best part? Wont cost you anything, the sellers pay for the buyers agents.
As for the required closing cost you are going to have to use some rules of thumb here too. For instance we usually say 3% covers the closing cost however that rule does not hold true if you are buying say a $40,000 manufactured home in the outlying areas of Phoenix. I use $3,000 as a rule of thumb for cost up to about $200,000 purchase price. Please keep in mind that these are very general rules, and a quick conversation allows a lender the ability to give very detailed information. Most lenders especially the ones like myself will not issue any sort of written quote until after we pull credit so be prepared for that. This is for a couple of reasons, first it could cost me my job. Secondly, the new Reg Z rules could actually bind the bank to that estimate, so its in everyone's best interest to ensure that we are quoting deliverable estimates.
I hope this helps and if you have any questions please feel free to contact me anytime,
If you want actual loan quotes please contact me, I am local licensed Morgage lender.