©
Greg Whiteside
407-739-7640
Greg@GregWhiteside.com
NMLS 329312
purchasing a home
How much money will I have to put down?
There are many loan programs available which offer a variety of down payment options. Which is right for you? On a conventional loan, down payment options start at 3% of the purchase price. The greater your down payment, the more favorable the interest rate and cost of mortgage insurance. Mortgage insurance is not required if you put 20% or more down. On a FHA loan, the required down payment is 3.5%. VA and USDA loans are the only types of loans that do not require a down payment. If you or your spouse have served in the military, you may be eligible for a VA loan. USDA loans are available when purchasing in a 'rural' area as defined by the USDA. Please note USDA loans have income limits which restrict who may access them. Down payment assistance programs also exist to assist borrowers in certain circumstances.
What is mortgage insurance? Is it the same as mortgage protection insurance?
Mortgage insurance is required when your down payment is less than 20% on a conventional loan and always required on a FHA loan. Lenders view a lower down payment as a riskier investment and mortgage insurance protects the lender in the event of borrower default. This should not be confused with mortgage protection insurance, which protects the borrower by paying off the mortgage balance in the event of the homeowner's death.
Why should I use a Realtor?
The real estate market is highly localized; working with a professional who has an intimate knowledge of the exact geographic area you're interested in can be very advantageous. A Realtor can find the most desirable properties, negotiate the purchase price and contract terms, help you fully understand those terms, advise you during your inspection period, and protect your interests from beginning to closing. It is a win-win relationship I would strongly recommend.