Vacation or Weekend Home ready?
If you are at a stage of your life where you are successful and making good money‚ perhaps a second home may be right for you. If you’ve paid off the mortgage on your current home or are close to doing so‚ you have steady income‚ good credit and see potential profitable opportunities in the housing market‚ or maybe you’re just at the right place at the right time‚ inquire about our 2nd home financing options today.
We typically start with how much you want to spend each month on housing. Everyone has a different budget that fits their lifestyle. Most budgets call for 28% of your after–tax income for house payments‚ including your homeowner’s insurance and property tax. For example‚ if your annual income after taxes is $70‚000‚ 28% of that is $19‚600‚ or $1‚633 per month. There are other debts to include when budgeting like child care‚ car insurance‚ etc. A mortgage expert can assist you in coming up with your preapproved price range and what range of purchase price you should be in when shopping around for your new home.
Based on where you live and what kind of policy you want‚ your property taxes and homeowner’s insurance will vary. You can get an estimate on homeowner’s insurance by visiting a provider’s website. To see what kind of taxes you might pay‚ you can ask your real estate agent to help you research the tax rate in the areas where you’re house hunting‚ or you can visit the county tax assessor’s website to find public records of taxes on homes in the neighborhoods where you want to live. Many states also provide a property tax estimator online.
Mortgage closing costs or settlement costs‚ are fees charged for services that must be performed to process and close your mortgage application. Examples of mortgage closing costs include title fees‚ recording fees‚ appraisal fees‚ credit report fees‚ pest inspection fees‚ attorney’s fees‚ taxes and surveying fees. The closing cost of a loan can vary depending on your geographic location.
Lenders are required by law to provide you with two documents which are the Loan Estimate and the Closing Disclosure. These documents outline your closing costs and help you avoid surprises at the closing table.
If you are buying a home‚ you’re usually off the hook for paying a realtor fee. The home seller usually picks up this payment. Typically‚ the fee is paid by the seller at the settlement table‚ where the fee is subtracted from the proceeds of the home sale. The realtor fee is paid by the seller to the listing broker who‚ in turn‚ shares part of it with the realtor who brings a buyer to the table.