Financing Your Home
Financing your new home
There are many critical factors involved in determining the best way to finance your home.
Determining the right price range
The first step in the buying process is to determine the price range that is right for you. You will need to consider how much cash you are prepared to invest in your home and how much money you will need to borrow.
Determining cash you will need
Your cash on hand will have to cover both the down payment and any closing costs associated with the purchase. Closing costs vary significantly based on the terms of any loan you may obtain, but are generally 1% to 2% of the purchase price. There are also moving expenses to remember.
You should also take into consideration how much your property taxes and insurance will cost in addition to a monthly mortgage payment in determining the right price range.
Determining additional costs
Your Zephyr agent will help you estimate your purchasing power and costs, but we highly recommend that you talk to you accountant and/or financial advisor to discuss your cash needs and your tax advantages.
Pre-qualifying for a loan
An offer to purchase a property is given greater consideration by a seller when the offer is accompanied by a pre-qualification or, better yet, a pre-approval letter from a reputable lender or mortgage broker. This gives assurance to the seller that you will be able to get the proposed financing and will not tie up the property needlessly.
Potential lenders will inquire about 6 critical tactors:
- Income
- Available cash
- Credit history
- Debt level
- Employment history
- The price of the property you wish to purchase
Zephyr can recommend several lending institutions from which you may obtain pre-approved financing.