What you might think about financing buying your first house
Closing costs are fees paid at the closing table on a property sale. These include things like title insurance, recording fees, transfer taxes, and real estate agent commissions. When you calculate the total cost of the transaction, these expenses often add up to several thousand dollars.
You might think you need a lot of money saved up before purchasing a home, but you shouldn’t feel pressured to rush into a deal. Here are three examples of how you could obtain help purchasing your first house:
First Time Buyer Mortgages
The average home price in the Denver Metro Area (DMA) was $300K in December 2017. That’s according to data released by the National Association of Realtors®. This means that many buyers may have to pay cash for their homes, or even wait until they save enough money to put down 20% or 30%.
Interest Only Loan Programs
Instead of making monthly payments that include both principal and interest, you would just make interest payments on the amount borrowed. You’d still end up paying off your entire mortgage over time, but you wouldn’t pay anything upfront.
Down Payment Assistance
Most lenders require a minimum 5% down payment when you apply for a mortgage. However, if you meet certain criteria, you may be eligible for government programs that allow you to borrow funds to assist with your down payment. One example is the Federal Housing Administration (FHA), which offers loans with as little as 3% down.
If you’re looking to buy a house, talk to someone who has experience
Kelley Hamilton with Edge Home Finance will likely be able to answer questions such as: What types of mortgages are offered in Denver? How much will I save by paying cash instead of taking out a loan? Will I qualify for certain financial assistance programs?
When buying a home, it pays to consult Kelley Hamilton. She’ll be able to provide answers to your questions and ensure you get the best deal possible. If you’ve had your eye on one of our available homes but haven’t yet decided whether to buy, now’s the time to start thinking about financing options.