Buying a Home Just Got Easier With Us
You need to consider many things before finally deciding to buy a home. You must have enough money to make a deposit, a down payment and cover the closing costs.
Experts in Latitude Financial work with clients as Mortgage Brokers in Southampton PA. We are glad to provide guidance and help our clients choose the type of loan that is right for them.
At Latitude Financial, we are also ready to answer your questions about the amount of the down payment and the closing costs.
Serious about Buying a House? Save Some Money.
Most people buying a house would need to have some money on their banks accounts. When you sign a contract, you’ll need to make a deposit.
This amount of a deposit can vary, but is usually between $500 to $5,000 and proves that you’re serious about your plan to buy the house. The deposit is applied towards the purchase price or the down payment if your offer is accepted. In case of your default on the contract, however, (for example, for not having the house inspected within the timeframe specified in the contract and then refusing to finalize the purchase as a result), you can lose your deposit. If your offer is rejected, or the seller defaults on the sale, your deposit will usually be refunded.
Later, usually as the settlement, you would need to pay the rest of your down payment and cover the closing costs. A down payment is the percentage of your home’s purchase price which you pay upfront while closing your home loan. Lenders often consider your down payment amount as your investment in the home. The amount of a down payment also affects how much you’ll need to borrow and sometimes – among other factors – could also affect the interest rate you will have to pay. Your lender may offer you a lower rate if you can make a higher down payment. Overall, the amount of the down payment will depend on the purchase price of your home and your loan program. Different loan programs require different calculations for determining your down payment.
Closing Costs: What are they? And How Much Will You Pay?
Closing costs include points, title insurance, escrow and lender fees. Various factors may affect the amount of the closing cost, and the latter vary from state to state.