Financing
 

Steps to Financing Your New Home

Determine what you can afford

Each buyer is unique and your lender can help you find out just what you can afford. Your income and your debts will typically play the biggest roles in determining your price range.

Three key costs to consider are:

Down payment - the part of the property purchase price paid in cash and not financed with a mortgage. One thing to consider is that the larger your down payment, the lower your monthly mortgage payments will be.

Closing costs - cash due at closing or expenses you and the seller pay to complete the transfer of ownership. Closing costs are typically based on the home price and vary according to location. They might include an origination fee, attorney's fee, initial escrow payments, and charges for obtaining title insurance and a survey.

Monthly payments - When you are approved for a mortgage loan, you make a commitment to pay back the loan on a monthly basis. Your payment is based on both the principal — the amount of the loan — and interest — the amount you pay to borrow money, calculated as a percentage of the amount borrowed. It also includes money that may be held in escrow for taxes, homeowner's insurance and mortgage insurance.

Loan Programs

Finding the best loan program for your needs depends on a number of factors, including:

How long you'll stay in the home;

How much money you'll put down;

How you'll finance the closing costs.

Tax Benefits

You may be able to deduct the interest you pay on the mortgage loan and some of the financing costs of the home, such as points. And your property taxes could be deductible. You should consult your tax advisor for more information.

Contact Mortgage Services today 866-648-1520.