Money!!!! Absolutely, when purchasing a home, the astronomical amount of money we are dealing with can cause anxiety. Especially to someone is just out of college or school. Luckily, in today’s market and around the country, we have options for financing. These include Conventional, FHA, THDA, VA, and several other options. Options for a Conventional mortgage can be cash, low down payment loans, conforming, and non-conforming loans. Other options, such as VA, FHA, THDA, may have loan limits or credit score restrictions.
In regards to any type of mortgage loan, the funds a buyer may be required to pay during the process are:
- downpayment
- earnest money
- for any inspections
- appraisal
- hard credit check fee
- closing cost
If a buyer chooses to apply for government-backed loans, the down payment, credit check fee, and closing cost may be rolled into the loan or negotiated to be paid by the seller. The three exceptions to this are the earnest money, the inspections for the property, and the appraisal. The inspectors are chosen by the buyer and paid by the buyer. The appraiser is chosen by the lender and paid by the buyer. There are exceptions to the rules. It is always good practice to ask the lender about their policy when you are shopping around for a loan. YES, always shop around for your loan.