02/21/2022
💰 LISTEN! If you plan on buying a house this year please listen up (and if you're not, change your mind). These sellers aren’t paying a penny towards closing costs and everything is selling well over asking price. Buyers are getting their offers accepted everyday but if you want to be one of them, you have to come correct and bring your 🅰️ game. So how much money do you need??? Let’s break it down 👇🏽🏠
1️⃣ Escrow/Earnest money - (Generally 10K - 10% of the purchase price - but more if possible, if you want to let a seller know that you’re serious about the house. This money will be held in an escrow account and can't be touched until the closing or cancellation of the transaction. Upon closing, this will be returned to you and go towards what you owe at closing. This amount can be less depending on the market location where you are buying.
2️⃣ Inspection - ($500-1000 depending on the size/type of property) Not mandatory, but strongly recommended - sometimes waived for strategic reasons. You don’t want to spend hundreds of thousands of dollars only to find out you brought a lemon 🍋
3️⃣ Appraisal - ($500-700) This is how the bank determines is the house is worth the amount that you’re trying to buy it for. The bank isn’t going to finance more than a house is worth so if you’re feeling froggy 🐸 and want to jump well over asking price to win the deal, make sure you have some extra coins to cover an appraisal gap. Actually, there is a difference between appraised value and market value, and in an appreciating market, there is often a gap, so strategy and how a deal gets structured is really important ( ).
4️⃣ Closing Costs and Prepaids - (3%-6% of the purchase). This is make up of many different fees that are associated with your home purchase. This includes lender fees, closing attorney fees, taxes, prepaid insurance, title insurance, etc.
5️⃣ Down Payment - This amount depends on the type of loan that you have. $0-VA loans, $0-USDA loans, 3.5%-FHA loans, $3%-$20% Conventional loans - Minumun Dow payments are not the most competitive, but again strategy and structuring are key ( or )
Ganesh Madhathiveetil @ Keller Williams Realty Gold Coast NYC & Long Island
☎️ 347-963-0603
