Speak with a Mortgage Professional(630) 620-5200
Buying a home is one of the most important decisions you can make. Plus, considering current low mortgage rates, homeownership has never been more appealing and affordable.
In this article, we’ll break down how much you need to purchase a new home before the year ends, plus we’ll explain the typical expenses you’ll encounter when closing the deal on your new property.
Try our new online mortgage calculator to estimate --down to the penny --how much your monthly mortgage payment will be.
Traditionally, a 20% downpayment was required to purchase a home. While putting down 20% has its perks, it can be challenging to come up with this amount. This is particularly true if you plan on living in a premium location where home prices are substantially higher.
The good news is that today there are low down payment options. Government-backed loans like FHA or VA loans allow you to put down as little as 3.5% or even 0%! There are also many conventional loans with favorable low down payment requirements.
“Closing costs” is a catch-all term that includes origination fees, credit report fees, appraisal fees, application fees, title insurance, and title search fees to name a few.
Closing costs will vary depending on the lender and the price of the home. However, estimating 2 to 5% of your home’s purchase price will give you a close approximation of what your closing costs will be.
For example, if the purchase price of your new home is $300,000, prepare for $6,000 to $15,000 in closing costs.
The lender may not necessarily require a home inspection, but it’s often recommended as part of due diligence. Although the cost of $300 to $500 for a home inspection can seem too high, the investment could potentially save you thousands down the road by making you aware of any hidden structural defects.
The cost of property taxes depends on the value of the property as well as the county and city where the home is located. Typically, tax assessors will value the property every one to five years and charge the appropriate rate following the standards set by the local taxing authority.
By the way, your property taxes fund the local schools, public transportation, emergency, parks, and libraries.
Homeowner’s insurance protects you should unexpected damage occur due to emergencies like fire, earthquake, or flooding. Some policies also include coverage in case someone is hurt on your property or from a break-in. Understand that this insurance is separate from the insurance included in your mortgage.
Mortgage insurance, or PMI, is meant to protect the lender in case the borrower is unable to pay their mortgage. Homeowner's insurance is a policy that offers the homeowner financial relief in case of damage to the property or personal belongings.
Homeowners association fees, or HOA, are monthly charges used to cover community perks like the pool, gym, tennis court, and clubhouse. The HOA fees typically also include landscaping and pest control.
It can seem overwhelming to buy your first home but know that we’re here to make it as simple as possible. We’ll guide you through the qualification process and help you understand every fee associated with your home purchase so that you can make the best decision for yourself and your family.
Give us a call or send us a message on our website today.
NMLS 191342 (www.nmlsconsumeraccess.org)
ILLINOIS RESIDENTIAL MORTGAGE LICENSEE - LIC # MB.0004233
INDIANA RESIDENTIAL MORTGAGE LICENESEE - LIC # 38385
FLORIDA RESIDENTIAL MORTGAGE LICENSEE - LIC # MLD2085
Powered By LenderHomePage.com
CU/America Financial Services, Inc. strives to ensure that its services are accessible to people with disabilities. CU/America Financial Services, Inc. has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
CU/America Financial Services, Inc. makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows www.cuamerica.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
CU/America Financial Services, Inc. accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
CU/America Financial Services, Inc. continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on CU/America Financial Services, Inc. website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on CU/America Financial Services, Inc. website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: email@example.com