4 Costs Homebuyers Should Consider From the Start

Dated: 08/14/2019

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A real estate purchase includes costs more than just the sale price. Here are other considerations to include in your homebuying budget.

Downpayment 

Some lenders require a 20% downpayment at closing. While it can take time to save up that much, paying a lump sum up front will lower your monthly payment. Generally, the majority of Buyers do choose a loan that may only reuire 3-5% down payment. Don't let the 20% number stop you from pursuing your own home, if your lender helps you determine you can afford it.

Monthly Payment 

Your payments will cover principal, interest, taxes, and insurance. You may also have other recurring expenses, such as HOA dues, that you should factor into your budget. 

Mortgage Insurance 

If you don’t pay at least 20% of the purchase price as a downpayment, your lender will probably require you to pay private mortgage insurance (PMI). This isn’t insurance for you—it protects the lender if you default on the loan. 

Closing Costs 

A buyer and a seller can negotiate how much each party pays at closing. But unless the seller agrees to pay all of the closing costs, you’ll be responsible for paying a portion of these fees. 

When you’re ready to become a homeowner, contact a REALTOR® to determine how much you can realistically afford.

original post: https://www.texasrealestate.com/members/posts/4-costs-homebuyers-should-consider-from-the-start/ 


Legal Disclaimer: The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While Texas REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, Texas REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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Hilary Meader

You’re ready to buy or sell your home, but that means using a real estate agent. I consider myself an 'UnRealtor' - I'm in this for YOUR happiness. Professional yet personable. Let's talk soon! So....

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