Buying a house, especially for the first time can be a little nerve-racking. It can also be overwhelming how much paperwork and documents are involved in the purchase of real estate. The federal government has made it a little bit easier to understand how much money to bring to closing with the simplification of their truth in lending statement. As mortgage brokers, We are obligated to present you with a good-faith estimate that is to be as close as possible to the final amount. This means we cannot change the amount that you will bring to closing at the last minute. We will be able to present you at the time of the application and finalizing financing on your home exactly how much omega closing so that you can plan and prepare for final signing.
During the home buying process, you'll need to have liquid cash out of pocket. You'll need initial funds for your earnest money deposit, which could be anywhere from $500 to up to 5% of the purchase price of the home. Most home buyers will write a check for anywhere from $500-$10,000, which will be deposited upon mutual acceptance of the offer. This money will go towards your down payment at closing. This money will not be deposited until there is mutual acceptance of the offer.
Read more: Your first stop on the road to homeownership
Other out-of-pocket costs will be the home inspection. This is roughly $300-$800 and given to the inspector at the time of the inspection. From there, any other monies will be brought to the closing table. This will include any closing costs and fees, appraisal costs, courier fees, any back taxes or homeowners dues that are required upfront and your down payment. Typically this can be anywhere from $1000-$30,000 or more depending on how much are putting down the house.
There are several different programs out there that allow for a zero down payment or lower down payment and assistance funds such as FHA or government-funded programs. With these new laws, you should be able to understand exactly how much money you need to bring to the closing table when escrow or title calls you for final signing. We want you to be well aware of everything involved in the purchase and sale of your new home and make you feel comfortable about where all of that money is going.
If it anytime you have questions on your mortgage purchase, application or what your rights are please don't hesitate to contact me at any time.