When preparing to buy a home, the first thing many homebuyers do is look at the real estate ads in newspapers, magazines and listings on the Internet. Some potential buyers read how-to articles like this one. The next thing you should do - before you call on an ad, before you talk to a REALTOR®, before you shop for interest rates - is look at your savings.
Because determining how much money you have available for down payment and closing costs affects almost every aspect of buying a home - including how you write your purchase offer, the loan programs you qualify for, and shopping for interest rates.
If you only have enough available for a minimum down payment, your choices of loan program will be limited to only a few types of mortgages. If someone is giving you a gift for all or part of the down payment, your options are also limited. If you have enough for the down payment, but need the lender or seller to cover all or part of your closing costs, this further limits your options. If you borrow all or a portion of the down payment from your 401K or retirement plan, different loan programs have different rules on how you qualify.
Of course, if you have enough for a large down payment, then you have lots of choices.
Your loan choices include such varied programs as conventional fixed rate loans, adjustable rate mortgages, buydowns, VA, FHA, graduated payment mortgages and all the varieties of each.
A very important reason you need to have at least some idea of your down payment is for shopping for interest rates. Some loan programs charge a slightly higher interest rate for minimal down payments. Plus, the interest rates for different loan programs are not the same. For example, conventional, VA, and FHA all offer fixed rate loans. However, the rates vary from one program to another.
If you shop lenders by phone, the loan officer will be able to tell you which programs fit and quote your rates accordingly. However, if you are shopping on the Internet, you have to develop some idea of your loan program on your own.
Another reason you need to have a clue about your down payment is because it affects how you write your offer to purchase a home. Not only are you required to put your down payment information in the offer, but also different loan programs have different rules that also affect how you write your offer. This is especially important when dealing with FHA and VA loans.
If you are asking the seller to pay all or part of your closing costs, you have to be certain your loan program allows what you are asking. For smaller down payments, lenders allow the seller to pay less closing costs than for larger down payments. Some loan programs will allow a seller to pay certain types of costs, but not others.
Finally, your down payment also affects your ability to qualify for a loan. When you make a small down payment, lenders are fairly strict about having you conform to their underwriting guidelines. For larger down payments, they will tend to make allowances or exceptions to the rules.
As you can see, the down payment affects every choice you make when you buy a home. Although you should look at ads, familiarize yourself with neighborhoods, learn about prices, and read as much as you can - when you get ready to take action - the first thing you should do is figure out how much money you have available for the purchase.Back to Table of Contents
Welcome to the next generation of real estate service in Colorado - HQ Homes. HQHomes has been offering full service discounted flat fee real estate services for over 18 years serving thousands of satisfied customers whose savings total well over 1 million dollars.
Our Beliefs are "Treat the customer right - give them a GREAT deal and they will refer their friends and family
While it may seem pretty simple most corporate real estate companies don't get it, still charging high commissions. At HQ Homes flat fee real estate we have a different philosophy - You are more than just another customer to us - you are a life long client, friend, and our best salesperson.
Buying a Home?
We reward our home buying clients with up to 1/2 of our commission*. Simply buy a home and we give you up to 1/2 of the commission* towards your closing costs with our home buyer rebate.
Selling a Home?
We only charge a 1% flat listing fee fee* to sell your home, providing our customers full service and a industry leading marketing package, giving you better service and marketing than those high commission competitors.
Almost everyone we talk to asks "What is the CATCH?!?"
The catch is, if you buy a home without HQ Homes as your real estate company, without our flat fee you are giving away THOUSANDS of YOUR HARD EARNED DOLLARS.
Call Today And Find Out Why We Were Voted The #1 Real Estate Company.
Our Home Buyer Rebate Program is the best you will find in the Denver or Castle Rock Colorado real estate markets. At HQ Homes we make the home buying process simple, fun and profitable to you with our home buyer rebate. If you are like many of today's savvy homebuyers, you are more comfortable doing the initial legwork and research. Perhaps you only want to engage a real estate pro when you are ready and on your terms. If this is you, then you are our ideal client! Please give us a call.
Almost everyone we talk to asks us how we can offer our service at such a low cost while other people are paying commissions up to 7 times what we charge. The answer is very simple - VOLUME. We determined that we would rather help more customers, which equates to a bigger customer base who refer us more business, in turn lowering our costs of doing business. This decision has allowed us through our flat fee listing and home buyer rebate to pass these savings on to you, our clients. We continue leading the Denver real estate market into the next generation of real estate with the highest productivity and customer satisfaction rankings.
Our clients are so impressed with us that the average client refers 3 new clients to us! That's the nex generation of real estate, treating your customers right!
*Subject to lender approval, RESPA Act, and our legal disclaimer - We reserve the right to change the home buyer’s rebate program and home seller's program at any time for any reason without notice.
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