Money needed to prepare for a purchase will vary, so I am available to discuss your individual wants, and goals. The following will give you an estimated idea of what you will need to have as cash on hand, when saving for a home purchase:
- Earnest money (varies from $500-$2000 approximately) *Paid at time of accepted offer.
- Inspection ($4-500 approximately. Well/Septic/Radon will be charged additionally, if applicable) *Paid within one week of accepted offer.
- Appraisal money ($4-500 approximately) *Paid within one week of accepted offer.
- Closing costs ($2000 approximately) *Paid at closing.
- Down payment (3.5-20% of purchase price-unless you qualify for 0 down.) *Paid at closing.
These numbers vary depending on the purchase, and how we negotiate the agreement- For instance, I often negotiate into the contract on your behalf, that the seller will pay some or all of the buyers closing costs. (There are limits to these amounts, that I will help you determine via your lender.) The earnest money amount always varies, is a term of negotiation, and I will help you to determine what is best to offer, based on the details of our offer as a whole.
When deciding to buy a new home, it can sometimes be intimidating to begin the process of determining your ability for pre-approval for a mortgage. If you have me by your side, it can be streamlined, much easier and more successful for you though! The lender you choose is crucial to the success of the process for you. If you get pre-qualified with a lender that did not do due diligence on your file, and after you have invested time and money in the process, you then find out the lender was incorrect and unable to fund you it can be very tragic.
I can help you avoid potential situations like that, and make sure you are getting good rates and acceptable fees. Your lender can also be a factor in a sellers decision to work with you when you write an offer, so having a skilled, active agents input on the decision is advantageous for your negotiation in our area. I have the most current, up-to-date lender referrals for the Lafayette, West Lafayette, and surrounding areas for you, as well as valuable information regarding current loan programs that most may not be aware of.
Here is a general description of what you’ll want to do:
- Ask knowledgeable, trusted people, including me, who they would recommend as a qualified mortgage lender in our area.
- Call the lenders you would like to talk to. (This call is free, confidential, and usually only takes a few minutes, and usually you will be able to give them basic information over the phone to determine your credit score and ability to be pre-qualified.
***Buyer Tip***If your score is lower than needed at the moment, ask for recommendations, and an estimated time-frame for corrections to your credit score. A good lender will be the same as a good agent, and will not fault you for needing time to reach your goals, and will stick by you through the process of getting there!
Documents you may want to have on hand for determining pre-qualification/pre-approval are as follows: (You do not have to have these to make the initial call, but if you proceed further with a lender, you will need them handy.)
- Last 2 years W-2’s and Tax Returns
- Last 2 Pay Stubs
- Last 2 months Checking & Savings Statements
- Last 401K and/or Retirement Statement
“You are very easy to talk to…Jason and I loved that you didn’t mess around…if something needed answered, you got the answer that SECOND! You are also very honest and give great advice. STAGING is EVERYTHING people! Do the work! Thanks Kristy!!”
What do you think? 🙂