Saving for a Home Purchase
When looking at your home purchase saving up the down payment might seem like a daunting task. The good news is that you might not need to save as much as you think and knowing what to save can help you set a goal. The Burks Team is here to help with your Tyler home purchase and provide customized guidance in your home search.
Here are the things you should expect in bringing money for your home purchase.
1. Down Payment
The down payment is usually the first thing buyers think of when saving up for a home. Knowing how much to save for a down payment is a key first step. Every buyer has a different situation but one of the largest misconceptions that buyers have is that you need a large 20% down payment to purchase.
That is not the case! There are common loan programs that allow buyers to purchase with 3% down and in some cases no money down.
The Burks Team is here to help go over what programs are best for your families situation. Sometimes a lower down payment might be the best option even if you have money to put down.
2. Closing Costs
One item that buyers can overlook is closing costs. Closing costs typically range from 2-3% but can change depending on credit and the lender.
The lender that you go with can have a huge impact on the closing costs. Often lenders advertise low interest rates but they charge a lot upfront to get that rate. Working with a top real estate agent like the Burks Team can help get you with a lower cost lender.
3. Earnest Money
You will need to deposit earnest money with the title company once you have a home negotiated. You can think of this like a security deposit on your home purchase. The typical home purchase in the Tyler area has about 1% of the purchase price in earnest money.
The good news is that you do not have to plan earnest money as a separate expense. The earnest money is credited back to you assuming you end up closing on your house. It is just part of the process to give the seller some security that you are a serious buyer.
If saving up for a down payment is a concern don't wait until you are ready to buy to reach out. The Burks Team is here to help and there might be different options that can help lower the amount of money you need at closing.