Common Closing Costs for Buyers

You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for: • Down payment • Loan origination • Points, or loan discount fees, which you pay to receive a lower interest rate • Home inspection • Appraisal • Credit report • Private mortgage insurance premium • Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage • Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you. • Deed recording • Title insurance policy premiums • Land survey • Notary fees • Prorations for your share of costs, such as utility bills and property taxes A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

6 Creative Ways to Afford a Home

6 Creative Ways to Afford a Home 1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, www.getdownpayment.com, and the American Dream Down Payment Fund from the Department of Housing and Urban Development, www.hud.gov. 2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage. 3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can’t participate. 4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history. 5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner. 6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you’re in good financial standing, with a strong income and little other debt.

10 Ways to Prepare for Homeownership

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income. 2. Develop your home wish list. Then, prioritize the features on your list. 3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety. 4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price. 5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments. 6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you. 7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements. 8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal. 9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable. 10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

3052 Mitchell Way The Colony, TX 75056

~~~~~~~~Open House~~~~~~~~

Saturday, November 22nd, 2014

Come see me from 11am-2pm!!!!

3052 Mitchell Way The Colony, TX 75056 $460,000.00

Welcome home to this gorgeous Highland home located in The Tribute; a golf, lake & resort community in the heart of N. Dallas. This home boasts fabulous hardwoods throughout, media room, game room with bar, crown molding & open grand staircase. You'll love grilling at the full outdoor kitchen & make plenty of friends on this social street. Conveniently located within walking distance of the new STEM school, play ground & community splash pad!

1525 Yarborough Dr. Sherman, TX 75092 ~~~ Just Reduced $144,500

This free picture slideshow personalized with Smilebox

1525 Yarborough Dr. Sherman, TX 75092 - NEW LISTING!

This photo slideshow personalized with Smilebox

1525 Yarborough - $159,000 Fantastic property on the west side of Sherman near schools, shopping, and the hospital. Four bedrooms, two and a half bathrooms, car two garage with a 14x10 shop. Beautiful home with fresh paint.

1001 Blue Jay Ln. Sherman, TX 75092

This free photo slideshow created with Smilebox

1001 Blue Jay Ln. Sherman, TX 75092

$145,000.00

OWNER FINANCING AVAILABLE! Fantastic home in Country Ridge Estates that offers the community pool and playground. Four Bedroom, two and a half bathrooms, two car garage. This is a great floorplan with large rooms and closets. Make an offer today!!!!