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How Much Will It Cost Me to Get a Loan And Buy a Home?

How Much Will It Cost Me to Get a Loan And Buy a Home?

From first time buyers to renovation loans, what are the real numbers?

cost to get a loan and buy a home
Before seeking out a home equity line of credit or renovation loans, at some point each of us were first time buyers. One of the first concerns that prospective home buyers think about is how much will the process cost. 

The reality is that this money will largely depend on things such as the cost of the house and type of loan they are financing. The major three expenses that are needed upfront are the down payment, the earnest money deposit, and the closing costs.

The earnest money will be submitted when you make an offer and this is to help the seller understand that you are sincere about your interest. 

When it comes to the down payment this can sometimes be a challenge for some people. This is not an issue to be too terribly concerned about. There are a number of private and public agencies, like Freddie Mac and Fannie Mae, or the Federal Housing Administration and Veterans Affairs that can help you with this. 

The closing costs can often range anywhere from 2% to 7% of the value of the property, which can in turn add thousands to the cost of your home. There are a variety of lender fees, however it is important to understand that some of these are negotiable and can sometimes be waived. Don’t hesitate or be shy when it comes to asking about these, and sometimes you can also work out the seller paying some of the closing fees as well.

Whether you are seeking a first time loan, a home equity line of credit or renovation loans, in the end information is your key weapon and having someone on your side who knows the ins and outs of the system can also be highly beneficial. 

For more information about whether you may qualify for any of these first time buyer incentives call (803) 765-1680 and toll free at (800) 854-9484. 

Posted Mar 21, 2013 by Midland Mortgage Corporation