The dream of making a home purchase cannot be realized without some strategic planning such as accumulating enough monies to cover down payment, closing cost, pre-paid, and lender fees.  Whew....that sounds like a lot of money, and it is.  Don't worry; there are a variety of strategic methods that can be utilized to relieve some of this cost.

Before you ambitiously begin your home search and enter into negotiations, you should first take the time to consider how much your out of pocket expenses will be to make the purchase.

The down payment is a percentage amount depending upon the type of loan.  The minimal amount based upon a fixed rate mortgage ranges between 3.5% - 5% of the purchase price.   Other fees include prepaid expenses, closing cost, and lender fees.  And all of these can mount up to be another 3% - 5% of the purchase price.  

So, for example,  A purchase price of $100,000  can require a 3.5% down payment of $3500.00.  And the other expenses can sum up to be another $3500.00 - $5,000.  This is approximate $7,000 - $8,500.00 out of pocket monies you will need.  

However, if you can negotiate the seller to contribute towards your expenses, then much of this cost can be relieved.  And, there may be some special loan options available that can also help to assist with these expenses.  The way to find out is to visit with a mortgage loan officer.

If you are not yet ready to visit with a loan office but would like an estimate of how much monies you will need, we can provide that for you now.  Just send an email requesting this info, and we will email it back to you.  Or, if you prefer, you can schedule a "buyer's consultation" with a Preferred sales associate.  Together we can review the buying process, your expenses, and possible options.