Dianne Perkins
https://dianneperkins.supremelendinglo.com/
Ryan Weiderhold
https://branches.guildmortgage.com/va/arlington/ryan-weiderhold-264-rmrw.html
Welcome Back to THE CONNECTOR! Here this week's episode breakdown:
1. Understanding Different Loan Programs
The most popular options for first-time or limited-cash buyers are FHA and VA loans, and they each have unique benefits compared to a standard Conventional loan.
2. The Real Cost: Beyond the Down Payment
Your mom may have only talked about the down payment, but you need to budget for:
Closing Costs: These are fees from the lender, title company, and others, typically 2% to 5% of the loan amount. They cover things like appraisals, title insurance, and origination fees.
Escrow: You'll typically need to pre-pay a few months of property taxes and homeowner's insurance at closing, which go into an escrow account.
Earnest Money Deposit (EMD): A deposit you submit with your offer to show you're serious. It is typically applied to your down payment or closing costs if the sale closes, but you can lose it if you back out for a non-contingency reason.
3. Smart Timing and Strategy
The best time to buy is often when you are financially ready, but there are strategic elements:
Pre-Approval is Power: Get a full mortgage pre-approval before you start looking. This tells you exactly what you can afford, and your offer will be taken more seriously by sellers.
The Best Market Timing:
"Peak" Season (Spring/Summer): More inventory (more houses to choose from), but also more competition, leading to bidding wars and higher prices.
"Off-Peak" Season (Late Fall/Winter): Less inventory, but also less competition. Sellers are often more motivated, which can lead to better deals.
Don't Overextend: The lender will approve you for the maximum you can afford to pay, but this may not be the maximum you can comfortably afford. Budget for maintenance, higher utility bills, and emergencies.
Home Inspection Strategy: Even in a competitive market, never waive the inspection contingency. A $500 inspection can save you tens of thousands of dollars in repairs later.
Enjoy!