The path to a new home will have obstacles. These strategies will help you avoid setbacks along the way.
Save Money for a Down Payment
The price of a down payment will vary based on your mortgage and the lender. For most conventional loans, the rate is three percent of the loan amount. You can save time by using a down payment calculator on the web.
Save Money for the Closing Costs
The closing costs are fees for the mortgage. You’ll have to pay a percentage of the loan amount. If you’re on a budget, you could ask the seller to cover a portion of these fees.
Save Money for the Move-In Expenses
These funds will help you cover
Unexpected or necessary home repairs
Important upgrades for the home
Furniture for the home
Weigh Every Option for a Mortgage Loan
If you’re not eligible for a conventional mortgage, here are two viable options you can explore.
An FHA Loan
The Federal Housing Administration insures all FHA loans. If you qualify, you’ll need a 3.5% down payment.
A USDA Loan
A USDA loan is a guaranteed loan. This loan is for home buyers in rural areas, and it does not require a down payment. To learn more about it, contact the U.S Department of Agriculture.
A Custom Home Builder in Chicago, IL for First-Time Home Buyers