Buying my first home.?

General Question: If someone wants to buy their first home, do they have to take out a morgtage? or loan if they have the full down payment they are asking for? What is finacing? When do you pay closing costs?

Said the Mortgage broker to the FTHB (first time home buyer):

If you do not have all the funds to purchase the property outright, you will need a mortgage loan. The down payment is only a percentage of the sales price. After the down payment, your are still responsible for the remaining balance of the purchase price of the property. Financing is essentially this: someone is going to lend you money, at a cost, to help you pay for something that you do not have all of the necessary funds for. Closing costs are paid at the closing table. Closing costs include: fees charged by the lender, fees charged by the title company (A regular attorney is not qualified to handle this situation. A title attorney or title company will and should handle this transaction)and fees charged by the broker (if you choose to get one). Your fees will vary depending on how much your loan amount is, the state you live in (for all tax purposes), and who you decide to use (lender, title, and broker). You can look around on the internet or make a few phone calls to your local state/city agencies to see if they have any programs for down payment or closing costs assistance, or the seller, if willing, can contribute to your closing costs. Most lenders will allow for the seller to contribute anywhere from 3% to 6% of your closing costs. From my experience, closing costs are not included in your loan amount and the lenders will not allow you to roll them into the loan. Depending on how much you have for the down payment, you may be able to split that up and put some down on the house and save the majority for closing. When you apply for a mortgage either thru a broker or directly thru a bank, they will give you an estimate of what they are charging you. You will not see the final fees until you go to settlement (close). You can put money down on a property at any time either on the initial contract or thru the lender. A broker or lender will keep you updated on what you will need to bring to sttlement table. At the closing table you will be given a fee sheet to review and sign before the deal can be closed. With purchases, you have what is called a "3 day right of refusal" where you can cancel the entire loan transaction (money does not exchange hands until after this period, but all money is placed into escrow when you sign your settlement documents).

Sorry for going on and on but I hope some of this will help.
*FTHB are subject to a higher interest rate than a seasoned homeowner.

I would strongly urge that you have some type of professional finance advisor or broker help you because it can become complicated.

ALWAYS REMEMBER: ASKING QUESTIONS WILL NOT KILL YOU. THERE IS NO SUCH THING AS A DUMB QUESTION. THE DUMB QUESTION IS THE ONE THAT WASN'T ASKED--AND NEVER SIGN ANYTHING YOU DON'T UNDERSTAND!

GOOD LUCK!:) (I am really sleepy and I hope this comes thru clearly)

For dark angeland navigator: real estate agents and mortgage brokers are 2 different people. The agent knows little to nothing about financing and the broker knows little to nothing about the actual real estate. You may run into a superhuman who does both, but honestly, don't expect the one to do the others job. Navigator: The real estate agent does not provide any of that stuff at closing that you were talking about. The realtor does not even have to show up at closing. The title attorney or title company, the buyer and the seller are the only ones required at closing. Your fees will come from whoever is handling the title work. They will provide you with your settlement sheets and documents.

Yes, you have to take out a mortgage unless you pay the entire sale price in cash.
The down payment just reduces the amount of the purchase price that has to be financed. Ex. sale price $300,000, 20%downpayment of $60,000. This will leave you with a mortgage of $240,000.
Closing costs are normally added to the amount of the mortgage.

The best thing for you to do, is to hire an attorney. Always have a lawyer, when you buy a home..You are paying alot of money, for your home, and another few dollars, is well worth it..This way, you will have someone to watch out, for your best interests..Good Luck..

Normally, people put down 10% of the total cost of the home and they finance they rest with a bank through a mortage company. The part that you owe is called your mortgage payment. You'll pay it once a month and you will build up your equity which is the portion of value in the home that belongs to you and not the bank. You need to go to a mortage company to figure out how much financing you can qualify for and that will let you know what price range of house you should look for. I would never buy a house outright since the interest that you pay on the house every month for your loan is tax deductible and this help lower what you owe to the IRS. Closing costs are payed at the closing and usually the buyer pays most of the closing costs, but it can be negotiated with the seller through your real estate agent.

If you have the full price of the house in hand, plus lawyer fees you don't need a mortgage.

If you have a down payment of say 10 to 50 % you will need a mortgage. Call a few brokers. Try to lock in a low rate for as long as possible. Interest rates are rising.

Your lawyer will make arrangements with you for your closing costs. Sometimes they are added to a mortgage, sometimes buyers pay out of pocket.

Talking with a lawyer should answer all your questions. You will need one to close the deal anyway.

If you are paying cash and no loan is required there is no mortgage.

Financing is basically the process of getting a loan.

You pay closing cost at the "closing". The closing is typically a meeting where the buyer the seller and the Realtors that are involved meet. Typically the selling Realtor will prepare a closing or settlement statement which will detail what the buyer owes and the proceeds the seller will receive. This document will detail the purchase price, commissions, real estate taxes, inspection fees, tittle insurance and such. The bottom line on the document will indicate how much you owe of all of these expenses and how much the seller gets. You will want a copy of this before the meeting.

I would recommend that if you doing this with out a financial institution involved (not borrowing any money)that you should have an attorney review all the document and possible attend the closing meeting.

Few people can pay cash for a house. It's not just the down payment, but the rest of the purchase price. A mortgage of the seller's probably has to be paid off before you can own the house.

Financing is getting a loan for the balance of the purchase price after the down payment, and can include the closing costs. The closing is when the money and the deed change hands, followed soon after by recording the new deed and mortgage and the discharge of the old mortgage. The closing costs are paid at the time of closing.

Warning: if you show up at a closing with $200,000.00 in cash, because that's what the house costs, someone will be reporting you to the authorities!

Unless you are paying for the house cost up front and in full you will need to take out a mortgage loan. Closing costs are paid at the time you sign the papers for the house you are purchasing. What is the "full down payment they are asking for?" Most of the time you will be told how much you need to put down on a house when you find the house you want and go over the financing with the bank. They normally tell you what the down payment will be. Hope this helps a little

Do not pay cash for a new home, even if you have the cash. Put that extra cash to work by investing it.

it is best to talk to a real estate agent to learn an overview of real estate customs in your area. you don't have to hire the agent; you only need to talk about it with him/her. a good real estate professional can guide you through the entire process and make the experience much easier. a real estate broker will be well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. he or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you'll want to see. with immediate access to homes as soon as they're put on the market, the broker can save you hours of wasted driving-around time. when it's time to make an offer on a home, the broker can point out ways to structure your deal to save you money. he or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. and you don't have to pay the broker anything! the payment comes from the home seller - not from the buyer.

you can also try discussions with a bank loan officer or mortgage broker.

you are asking very much question here sorry....i had the same problem and if i tell it to you or somebody else they can't help you because....to find out all this information you have to go to the owner or who is building the house and ask him theese questio......thats what i have done and that s how i got all my information.....sorry i couldnt help you more but i cant tell you anything >>>>maybe i can but it could be wrong and i dont want to tell you something what is not true

financing means you obtain money to pay for something you do not have.
if you have money for a downpayment you need to obtin financing. a mortage or a loan are types of financing.

at closing, you pay closing costs. this is when the property is transfered to you.

Call NorthPort Lending ask for David 888-894-6688 ext. 111 One of the Best Loan Officers I know

If you have the money to pay the full price for a home you do NOT have to take a mortgage.
A down payment is a percentage of the sale price and is required when you ARE taking a mortgage.
A mortgage IS a loan and this is what they are refering to when they use the term financing.
Closing costs are paid on the day that the deed for the house is transferred into your name - which will be the day that you pay for the house (whether cash or mortgage)

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