Tag Archives: home buyer

My Partner and I Are Making an Offer On a Home, What Does All That Lingo Mean?

When purchasing a home, you will hear many different terms. When you make an offer, you will do so on what is usually a standard form that is called a purchase offer agreement. That is the document that outlines factors including the price you are willing to pay and any contingencies that you would like met. This document will not become a legal contract until you, your partner and the sellers sign it. Following are some other definitions for lingo you may encounter when preparing your offer.

download (1)Appraisal: The determination of what a home’s value is based on its condition, prices of similar homes in the neighborhood, and other factors that are assessed by a qualified professional appraiser.

Closing: This is a meeting of the parties involved to finalize the sale of the real estate. At the closing, the buyer will sign mortgage documents and pay the closing costs involved in the transaction. Note that in some states, a closing is not considered complete until the deed is recorded at the local county registry of deeds office.

Contingency: A condition that is outlined in the purchase contract and that must be met prior to closing on the home. For example, appraisals, inspections and certain repairs that must be made.

Earnest, or Good Faith, Money: The deposit that you make when you submit an offer on a home. The amount varies, but $500 or 5 percent of the value of the property is generally considered acceptable. This deposit is intended to show the sellers that you are serious about purchasing the property.

Fee Simple: Represents that you will own the property and that you may do whatever you like with it.

Mortgage: A debt that you will incur to the lender who provides funds for the purchase of the home. You will be required to give the lender a lien against the property until the funds, plus interest, are repaid.

Real Estate: Includes land and improvements, such as the home and outbuildings, that are permanently attached to it.

Realtor: A broker or associate that is a member of a local real estate board.

Title: The deed that shows legal ownership of a piece of real estate.

Title Insurance Policy: This type of policy ensures that there are no liens or other problems with the property in question.

Another term that you may see is Time is of the Essence. This means that the contract contains deadlines that must be met and that failure to meet those deadlines within the time set out will result in a breach of the contract.

If you are considering making an offer on a home, you should hire an LGBT real estate agent to assist you. He or she can explain any terms that you do not understand and help you throughout the purchase process. In addition, he or she will understand your needs and protect your interests. The best way to find a professional real estate agent who is reputable is to conduct a search on GayRealEstate.com.

Gay Realtors Top 5 Most Common Home Buyer Mistakes

Right from the time you start looking for a home to the time you close escrow, there is a lot to consider and many decisions to make. Making mistakes along this journey is not something new. But with the current financial standards, making mistakes will end up wasting your hard earned money. Common Home Buying Mistakes and How to Avoid Them

You need to avoid the mistakes at all costs, but how?

Below are some five mistakes that are very common among home buyers, and ways to avoid them

Expecting to negotiate a lower a price after making a deal.

In many cases, homes sell for more than the asking price since the real estate industry has been on fire. A couple of buyers will simply bid higher to win only to end up trying to get the prices down by requesting inspection credits during escrow. This can only work in weaker markets. Avoid this mistake. Most sellers nowadays have other backup offers from other buyers who would do anything to have the house. Never ask for unwarranted credits it could scare the seller, make them question your loyalty and decision making skills, and you will be left out of the deal.

Working with the lender with the lowest rate.

It’s never a good idea to buy anything based solely on price ~ the same is true for choosing a lender. Every day there are hundreds of deals across America that do not close, because a lender has failed to do their due diligence on you, and they have failed to meet the basic deadlines of the contract. You see teaser ads every day for the cheapest car, lowest cell phone service & best prices on groceries this is no different for lenders, but there is always something not quite disclosed! Do yourself a huge favor, and ask your gay realtor for a referral to a reputable lender, and save time, money and frustration.

Trying to shave every penny off a deal.

It’s true that everyone wants to strike the perfect deal but there are some dangers involved in the process. Pushing too hard with the seller can tell a lot about you. Win-win always works best give and take. If you attempt to shave every possible negotiation in your absolute favor, the seller might decide that you are too difficult to work with, and that he/she is no longer interested in any of your deals.

Use the advice of your professional gay realtor ~ they negotiate deals every day, and typically can lead you in the right direction.

Trying to find the perfect home yourself, without the help of a professional gay realtor.

The simple fact is ~ a large number of the homes you are finding on-line in your searches, may not even be on the market any longer.  A huge sum of money is involved in buying a home, so you have to do everything to make a wise investment, including working with a professional buyer’s broker.

Agents have a strong connection to the local market and know the hot spots of getting homes that are in accordance to your preference or choice. To buy a home in many cities today, you need access to them the minute they hit the market, you also need access to properties before they hit the market ~ this is where your professional full time gay realtor will be invaluable.

This will give you an added major advantage once you specify to them the kind of home you need and the price which you feel comfortable with. Plus you can trust your agent to assist you with areas you are not experienced with.

Not looking at your purchase like a seller.

There will come a time where you need to sell your home and therefore it is important to think like a seller. What are the future expectations of your home? Do you plan to sell it later on? Consider yourself a potential seller in the future and see that you make someone’s dream of owning a good home a reality. The last thing you can ever imagine doing is buying a home that won’t sell in the future. Funky is fun, but probably not a great idea when it comes to buying a home, unless you have the opportunity to take some of the functional obsolescence out of the home and turn a nice profit in the future.

Author Jeff Hammerberg is the Founding CEO of GayRealEstate.com. Free Instant Access to the Nation’s Top Gay, Lesbian and Gay Friendly Realtors Coast to Coast. FREE Buyers Representation ~ Free Relocation Kit to any City, USA ~ Free Sellers Market Analysis for home sellers.

Posted on September 16, 2013 in Home Buying

What Your Don’t Know About Buying a Home Could Cost You

With the housing recovery now well underway  housing starts are up; builder confidence is at a 7-year high; there are fewer foreclosures; and home prices continue to rise  you may be inspired to get off the fence and buy that dream home. But are you really prepared? Here are a few things you may not know  and what you don’t know could potentially cost you.

Credit score

See, hear, speak no evilWhen was the last time you checked your credit score? Any idea how good or bad it is? Are there any errors on your report that need to be fixed? Long before you begin to house hunt, you need to know where you stand. The higher your score, the better your interest rate. Get a copy of your report ”for free” at www.annualcreditreport.com.

Mortgages

An astounding one-third of home buyers surveyed by Zillow are ill-prepared to get a mortgage. Among the findings: 34 percent of first-time home buyers are not aware that it is possible to get a home loan with a down payment of less than 5 percent; 26 percent of home buyers incorrectly believe that they are obligated to close their loan with the lender that pre-approved them; and 24 percent incorrectly believe that the best interest rates and fees can always be found through the bank where they currently do business. You have to shop around! Get multiple quotes, understand rates and fees, and read lender reviews online.

Competition

With the number of homes for sale at historically low levels, all-cash buyers ”typically investors eager to renovate and resell or rent out homes” are jumping into this rapidly rising market. And they’re swooping up homes like there’s no tomorrow!  Don’t underestimate this deep-pocketed competition, but don’t take unnecessary risks (such as waiving inspection contingencies, for example), either, simply for the sake of getting your piece of the American Dream. You may be inviting trouble, and that trouble could be costly.

Price

Yes, you guessed it. Because there’s not much to look at these days (just a few months supply in some markets!), and you’re up against stiff competition, you could easily end up paying more than you bargained for. Don’t bust your budget! Your monthly mortgage payment should be 25 percent or less of your monthly take-home pay. Run the numbers using Zillow’s mortgage calculators.

Author Vera Gibbons is a financial journalist based in New York City ~ Connect with her at http://veragibbons.com/.

Posted on July 9, 2013 in Uncategorized

How Much Home Can You Afford to Buy?

Have you ever asked yourself this question: How much home can I afford to buy? If you did, and are still wondering the answer, we’ll help to answer it here.

How Much Home Can You Afford to BuyFiguring out just how much home you can afford is an important aspect of buying a home. You find a home you absolutely love and begin the whole loan process only to be disappointed because you simply cannot afford it. By figuring out how much house you can afford beforehand, you can avoid this disappointment and frustration.

The main factors you need to consider when looking at home affordability is your income vs. debt. We all know the importance of income, when it comes to borrowing; lenders want to know that you can pay your mortgage comfortably, while maintain your other debt. Essentially, no more than one third of your income should go towards housing costs. This applies whether you rent or buy. It is especially important if you are buying a home using the 33% rule, you can calculate just how much home you can afford. You need to remember, that this is not only the mortgage, but also homeowners insurance and property taxes.

While your income and the actual housing costs are important factors you must consider, there is also the home loan itself. There are aspects of the loan that will have a direct relationship to how much of a house you can afford. Essentially, your goal in finding a mortgage should be to get the best interest rate for the long term. The mortgage rate will depend on many factors, many of which you have some control over. One of these factors is the number of points you pay on the mortgage. They are the fees you pay to the lender at the closing of the home loan. Many lenders will only advertise one loan rate based on a certain number of points. However, you can ask if there are other options that will lower your interest rate on the mortgage. In general, the more points you pay at closing, the lower the interest rate. This may be a good option for those who have some cash after the down payment and would like to lower their overall mortgage payments in the future. Paying fewer points may be attractive to those who don’t have a lot of cash left over after the down payment.

You need to do a little bit of work in calculating how much home you can afford before shopping for a home. Make sure to consider your income, how much you have saved for a down payment, the amount of debt you have and the costs of insurance and taxes. By doing a little work, you will have a good idea as to how much home you may be able to afford.

Any of the professional full-time realtors at GayRealEstate.com will be happy to refer you to a reputable lender that can help you work through a pre-qualification before looking at homes ~ this will prevent any unwanted surprises.

Author Jeff Hammerberg is the Founding CEO of GayRealEstate.com. Instant Free Access to the Nation’s Top Gay, Lesbian and Gay Friendly Realtors Coast to Coast. FREE Buyers Representation ~ Free Relocation Kit to any City, USA ~ Free Sellers Market Analysis for home sellers.

Posted on July 5, 2013 in Home Buying

Home Buyers Be Advised – Cash is King!

If you’re looking to buy a home right now, you’d better find some cash and you’d better find it fast.

Right now homebuyers across the country, already in frenzied bidding wars for homes, are increasingly losing out to the almighty all-cash buyer.

“I had one couple, that was very well-qualified but would require a mortgage, put offers on four properties that were all sold to somebody else who paid cash,” says Bruce Taylor, president of ERA Key Realty Services in Boston. “It’s a very tight market. Until prices escalate further, we won’t have much relief.”

Cash FloatingTaylor’s story isn’t uncommon. Across the country, the number of homes bought with cash has rapidly increased over the past few years. More than 30 percent of homes in California are bought with cash, twice the 15 percent the state has been averaging since the early ’90s, according to real estate data firm DataQuick. In Las Vegas, more than half are bought with cash, while hundreds of miles away in Minneapolis, 25 percent of homes are bought with cash.

In Boston, Taylor estimated that about one-third of the homes on the city’s eastern edge are bought by cash buyers.

These folks are mostly investors — but not just the monolithic, institutional investment investors that have been snapping up distressed properties and foreclosures over the past few years. There are also a slew of well-heeled individuals with extra cash to invest, and they believe the real estate market is the place to put it.

“They pull the money out of portfolios or they borrow it from Mom and Dad, or I know of an instance recently where they basically liquidated everything they had, paid cash on a $700,000 home, then they will go back and take out a mortgage on it and pay themselves back,” says Atlanta Realtor Bill Golden, an independent agent with RE/MAX Metro Atlanta Cityside.

In fact, many of the buyers paying cash don’t plan to actually keep all that cash in the house.

Tanya Marchiol, CEO of TEAM Investors, works to get individual investors on their feet. She says many are pulling money out of their IRAs to purchase homes. She encourages them to do this on smart investments, with one caveat: they turn around and get a mortgage, with a historically low interest rate, right afterward.

For these investors, who wind up with a mortgage anyway, the cash is really just being used as a bargaining tool and it may be the best one there is.

“Cash is king in terms of bidding,” Golden says. “If I have three offers on my listing and two of them are for 80 percent financing and one is cash, the cash is going to win, even if it’s slightly less than the financed offers.”

To answer why, you have to look at the appraisal process. Price appraisals are common during the home selling process. They confirm that the home’s value is not substantially below the asking price. The step is necessary for buyers who are getting a mortgage the bank won’t lend buyers $300,000 for a home worth only $250,000.

But the market is moving so quickly that the data that appraisers use to determine value — particularly comparable home sale prices — are months old. Home prices have typically increased so much in that time the appraisers data is out of date, so the appraised value comes back lower than the agreed-on sale price, Taylor said.

That typically kills the deal, unless, of course, you have an all-cash offer. Cash buyers aren’t subject to the will of lenders, so they can sacrifice the appraisal entirely.

The average homebuyer, particularly first-time buyers, who must finance their homes with mortgages, simply can’t match that.

“The only way you can compete is with price and other terms, making the offer as acceptable to the seller as possible in all other aspects, coming in with a good price, working with the time frame sellers want–anything they can do to give them an advantage,” Golden says. “When all things are equal, cash is going to win and there’s nothing they can do about that.”

Taylor’s buyers who lost out on four homes to all-cash buyers eventually put down offers on 15 homes before finally winning the bid, and buying their home with a mortgage.

Ilyce Glink is an award-winning, nationally syndicated real estate columnist, blogger and radio talk show host, and managing editor of the Equifax Finance Blog. Follow her on Twitter @Glink.

See the original article at YAHOO / Photo Credit: Thinkstock

Posted on June 13, 2013 in Home Buying

Housebuying Tips in Multiple Offer Markets

As the housing market continues its recovery, prospective home buyers in some areas may have found, much to their dismay, that the inventory of houses for sale is somewhat limited, and sellers are receiving multiple offers.

A recent analysis by the real estate site Zillow, for instance, found that while some improvement has occurred, the inventory of homes for sale nationally in April was down about 14 percent from the same time last year.

The National Association of Realtors, meanwhile, also reported a decrease in inventory in many markets compared with a year ago. Some markets saw drops of 20 percent or more, indicating “near record lows” of available homes.

Specifics vary by market, of course, and there are also some signs that the lack of inventory is easing this spring, as home values have risen, Zillow found. Rising values bring more sellers off the sidelines, putting more homes on the market. Many owners have been waiting to sell because their homes are still “underwater,” or worth less than their mortgage.

Mark Cenci, broker with ERA Martin & Associates in Chillicothe, Ohio, said buyers need to be aware that the market is changing. Sometimes home shoppers are confused, he said, because there appear to be a lot of houses listed for sale, but many are actually under contract.

They think there’s plenty of houses, and that they can find what they want and get a great price, he said. But that’s not necessarily the case.

So what should a home shopper do, in a market where inventories are tight, and there may be competition for some homes?

Mr. Cenci recommended that if you are eager to buy and have found a home you really want, you make your offer as strong as possible  even if that means going a bit above the asking price. If you have time to shop around, you can be a bit more aggressive ” that is, lower ” in your offer. But, “If they need to move and they find house they love, they shouldn’t be afraid to make a good offer,” he said.

Another way to show a buyer that you are serious, and to set your offer apart from other buyers, is to increase the amount of earnest money you put up with your offer. The money goes toward your down payment if your offer is accepted, and is returned to you if the seller declines your offer. (Of course, if your offer is accepted and you back out, you lose your earnest money. So again, it makes sense to up the ante only if you’re confident that you want the house.)

If you think there’s a chance you won’t go through with the purchase, he said, save everyone a lot of time and “don’t make the offer.”

It also makes sense to consider the type of mortgage you will use, according to ERA. While some buyers are attracted to F.H.A. loans because they typically require lower down payments, a conventional mortgage may be more attractive to a seller. That’s because the requirements for the condition of the property are often tougher for F.H.A. loans, so some sellers may be wary of being asked to make repairs before the sale can proceed. If you can swing a higher down payment, a conventional mortgage may help your offer.

In general, limiting the number of contingencies in your offer whether they are related to financing, inspections or other conditions  will strengthen your offer, he said.

Are you in the market for a home? Have you had difficulty finding a house, or encountered competition for your chosen property?

Read the Original Article
By ANN CARRNS | New York Times

Posted on May 20, 2013 in Home Buying

Interview Questions to ask a Real Estate Agent before Buying a Home

Interview Questions

Real estate agents are varied and have multiple levels of experience and motive. Finding a good real estate agent before you purchase a home is worth shopping for.

It will take time to find a home that you like, and you should be as determined to find a great real estate agent that you like and trust to keep your best interests at heart. A professional real estate agent or REALTOR® should not have a problem answering some of the following questions, and it will give you peace of mind. Communication and understanding should be a strong foundation of your relationship with your agent.

  • Is your real estate agent new, experienced in the field, full time or just part time?
  • Have they provided you a list of references with contact information?

Asking for references of past clients helps to get a good understanding of personal reviews, take the time to actually speak to some of them.

Contact people who have been home buyers working with this Realtor or company. Even if the references did not purchase a home, they will have very useful information about their experience with the Realtor.

If it is just a part time position for the Realtor, you may find it difficult to schedule meetings or viewings at times which are convenient to you. If they have a team, or assistants involved, get a list of anyone that you would likely be in contact with.

Determine the mode and frequency of contact whether via e-mail or phone. If you lack communication, you may miss important home viewing opportunities.

  • Does the agent have an informational and easy to access website for communication and reference?

It can save valuable time reviewing properties before you actually go to the location.

  • Does the Realtor represent you, or the seller?

This makes a huge difference when it comes to making a decision on the price. If they have a personal connection with the seller, they may not have your best interests in mind. Ask for a list of fees in writing, so that there are no surprises in the total cost.

When buying demand to work with a buyer’s agent (buyer broker), no exceptions!

  • Will the agent show all available properties from other companies’ listings, or just their own?

Buying opportunities could be missed, and it would be costly to have more than one Realtor.

These are just basic guidelines, but if you are not afraid to ask, it will make a much less stressful buying experience. Well constructed research builds the strong foundation of a future home.

Author Jeff Hammerberg is the Founding CEO of www.GayRealEstate.com ~ Free Instant Access to the Nation’s Top Gay, Lesbian and Gay Friendly Realtors Coast-to-coast.

Posted on November 9, 2011 in Uncategorized

Trick or Treat ~ What to Look for in a Home Inspection

Home Inspection

Buying a home isn’t as clean cut as you would like it to be, requiring that you take the time to inspect the home before you decide if it’s the right fit for you and those that will be living with you if you have a family.

Your inspection should involve several things, most importantly, electrical, roofing, pluming and foundation. In addition, whether or not the floors are stable, without drooping spots or sink holes, and whether or not the windows are updated or if there is going to be an efficiency problem. At the same time, you want to do your homework and determine the condition of any included appliances. 

When you are initially going through the home, you are of course tempted by the difference to overlook many things, but you should always take the time to hire a professional certified home inspector and complete a thorough home inspection. I’d recommend an inspector affiliated with: The American Society of Home Inspectors (ASHI) North America’s oldest and most respected professional society of home inspectors.

This helps to assure no scares or surprises by the home or the inspector.

The very first thing you want to consider is the actual electrical service panel and proper wiring throughout the home.

As you continue through the home, you’ll want to check out the plumbing… everything secure, and lurking lead pipes? How old is that roof, and how many layers are currently on the home?

You’ll want to also check out the windows as these are very important to the comfort of the home. If the windows are out-dated, it is easy to deduce that they will leak out heat and air, causing issues with efficiency. Updated windows seal in the heat and air into the home much better, therefore can introduce much greater savings when it comes to electric and heating bills. Also, updated windows signify that other elements of the home may have also been updated.

Don’t forget to do your homework when it comes to the inspection of a home, as there are things in the past that can affect the home as it stands today.

You also want to find out the average heating and lighting bills in the home by simply calling the utility company and providing the property address to ensure you aren’t getting into a money pit that is going to make it difficult to maintain the cost of the home.

If there are any major issues, they should be addressed before considering the home so you are able to determine the steps that will be taken to prepare the home for you.

Your real estate contract will allow for a home inspection, and working together with your realtor, you can determine what are safety / security issues and need to be addressed, vs. cosmetic issues which you noticed when you wrote your initial offer.

Author Jeff Hammerberg is the Founding CEO of www.GayRealEstate.com ~ Free Instant Access to the Nation’s Top Gay, Lesbian and Gay Friendly Realtors Coast-to-Coast.

Posted on October 25, 2011 in Uncategorized

When Buying a Home, How Do I Find A Good Area?

Gay Neighborhoods, Gay Friendly Areas

Making the decision to choose an area for your next home is a complex one.  You’ll need to consider the school district, if you have or plan to have children, proximity to work, and a vast array of other variables that making the right decision often seems overwhelming.  A good area is a very subjective idea; one property may be perfect for one family, yet a deal breaker for another. 

It’s important to identify a baseline set of criteria so that the subjective idea of a “good area” can be defined.  In our experience, this is best accomplished by initially outlining a few key areas detailed below.

Work:

By far, the most important will initially be the proximity to work.  Unless you actually enjoy the monotony of hour-long drives to and from work each day, you’ll likely want to live as close to work as possible, without sacrificing too many luxuries.

Begin by identifying a maximum travel time to work.  This will create a radius around your place of employment that will help narrow down the areas you’ll have to choose from.  You’ll discover that the larger the city you plan to move to, the more beneficial this particular exercise will be for your future home search.

Schools:

Do you have any children, or plan to?  The school district will play an important role in your decision on choosing an area for your next home.  Even resale values are affected by the school district regardless of your personal desires, so spending time in this area is definitely financially smart!  We’ve already identified a target area around your work – now we’ll identify all of the school districts in this area and list each one in descending order from most desirable to least.

Some factors you may want to consider are student-to-teacher ratios, history of exemplary statuses, prior average grades in testing, and student size.  Larger schools in an area with lower education budgets may experience higher student-to-teacher ratios than average, so carefully research each district using online tools such as http://greatschools.com

As a rule of thumb, compare each district with your present school district to determine if you would be moving up or down in quality, compared to your children’s current school district.

Age of the Area:

Newer, undeveloped areas are in a constant state of change.  You may see a steady increase in home values in new areas if the supply is kept within a modest range of demand.  In some cases, the mere fact of builder competition alone will keep prices low while they are still developing an area, which can cost money if you unexpectedly need to sell right away.

Areas with older homes are opportunities to find properties recently renovated, or homes that exhibit a desirable, traditional characteristic that a new home simply doesn’t provide.  Home prices in older areas are also more stable and less subject to the ebb and flow of the real estate market.

Responsibility comes with age, unfortunately.  Older homes may be more subject to repair costs, and lack many energy efficient features that a newer home can provide.

Choosing the Perfect Area:

Work your way through the above exercise to get a clear picture of the ideal location for your next home.  When in doubt, be sure to contact a Top Realtor at GayRealEstate.com to get expert guidance on the discovery process.  As professionals that do this day in and day out, we’ve developed a keen sense for uncovering the needs that ultimately drive the decision on where to move.  We are experts in the real estate market; who better to talk to?

Contact a GayRealEstate.com agent today to get started.

Jeff Hammerberg is the Founding CEO of www.GayRealEstate.com the Nation’s Largest Free Directory of Gay, Lesbian and Gay Friendly Realtors ~ Offering Free Buyers Assistance / Free Sellers Market Analysis and a Free Relocation Kit to Any City, USA.

Posted on September 26, 2011 in Buying a Home

How Much Cash Do I Need for a Down Payment when Buying a Home?

mortgage cash

Getting pre-qualified before touring homes can be a great way to ensure that you can act fast in today’s real estate market.  When you’re on the prowl for that perfect property and are ready to pounce, the last thing you need is a pre-qualification delaying your offer.

One of the questions your mortgage professional with inevitably ask is, “How much do you want to put down?”  Your down payment can be a gateway into a variety of useful mortgage programs suited for a wide range of needs.

It’s important to note that mortgage program guidelines are always in a state of flux, so be sure to contact one of our real estate professionals to make sure you’re prepared with the latest information.

Mortgage Programs

There are three main mortgage programs you for which may qualify, based on your down payment amount and credit scores:

  • FHA (Federal Housing Administration)
  • Conventional
  • VA (Veteran’s Administration)

Down payment requirements for each program were consistently updated in relation to current market conditions.  In most cases, the more you put down on your new home, the more incentives the loan program provides.

Since most consumers are primarily concerned with interest rates (and rightly so), remember that the minimum down payment may not always get the best interest rate, while a higher down payment will expand your loan program opportunities.

Mortgage Insurance

If a lender is at a higher risk of loss when a buyer may default on a loan program, the lender will usually require you to pay for an insurance policy on their behalf called mortgage insurance (MI).

Traditionally, this is required on a loan with a down payment less than 20% of your new home’s purchase price.  VA loans, however, are exempt from paying MI.

Down Payment Tiers

There are three main down payment levels that will progress you through the various loan programs for a traditional single-family home.

  • No-Money Down (currently limited to VA loans only)
  • 3.5% down (FHA)
  • 5% down (Conventional

VA loans are limited to those currently enlisted in the military and veterans.  While there is no down payment requirement on VA loans, a funding fee will be required by law.  This fee can be reduced with a down payment of at least 5% down and also be financed with your loan if needed.

FHA financing will require a minimum of 3.5% down and an up-front mortgage insurance premium (UFMIP) to be paid.  This fee is also constantly revised through mortgagee letters issued by HUD, so be sure to check with your mortgage professional for the latest UFMIP amounts.

Conventional loans require a minimum of 5% down and have the largest variety of loan programs available.  A conventional loan is a traditional loan by a bank with competitive interest rates based on your credit scores.

Talk to your Real Estate and Mortgage Professional

As you can see, obtaining financing can be a difficult process if tackling it alone.  Luckily, our real estate agents have dedicated themselves to understanding this process completely and have teamed up with mortgage professionals who share the same passion.

Contact a gayrealestate.com agent today to get started.

Author Jeff Hammerberg is the Founding CEO of www.GayRealEstate.com offering Free Instant Access to Gay, Lesbian and Gay Friendly Realtors Coast to Coast.

Posted on September 15, 2011 in Buying a Home