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Determining Your Budget: How Much Money Do You Need to Buy A Home in Texas?

How Much Money Do You Need to Buy a Home in Texas?  First and foremost, you should not just focus on the down payment, although that's not a bad place to start. When you contact a Mortgage Consultant, they will typically walk you through a few scenarios and help you determine which type of loan is best for your financial situation.

When buying a home, you need to consider the following cash factors:

 

  • Down payment - min. 3.5% FHA or min 5% Conventional of the purchase price
  • Earnest money -usually requested by the seller, but overall will be deducted as part of the transaction
  • Hazard Insurance - typically, insurance companies require the first year to be paid upfront
  • Closing Costs & Pre-paid Expenses - Displayed on the Good Faith Estimate which is provided by a Mortgage Consultant.
    • Lender Costs
    • Title Costs
    • Pre-paid items - 2 to 3 months worth of hazard insurance/tax reserves
    • Mortgage Insurance Premium - Can be financed into the loan
    • Can negotiate with the seller to pay for some/all of the closing costs (speak with your Real Estate Agent)
  • Reserves - 2 to 3 months worth of cash reserves, after all costs above are paid. 

 

As you can see, there are many factors to consider when buying a home in Texas. The exact amount needed to close can fluctuate depending on the loan amount, property taxes, and hazard insurance plan. For an accurate breakdown of what fees to expect, contact your local Mortgage Consultant.

These items should be determined before you make an offer on a home. Part of your offer will include the request for the seller to pay for some of the closing costs. Without knowing the closing costs, it makes it harder to request the exact amount (although it can be done).

Have you hired a Real Estate Agent?  Watch for my upcoming post which will help you narrow down your search for a Real Estate Agent in your area. If you are in the market and need a few suggestions, feel free to contact me directly as I can assist you with finding a Real Estate Agent anywhere in the state of Texas.

 

 

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Are you looking to purchase a Texas home?  Perhaps you love your Texas home but would be interested in refinancing your Texas mortgage to a lower interest rate?  

I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call or visit my website for more details.

Do you want to know all of your mortgage options? Call me today and let's discuss them further.

Texas Home Loan Consultant

Always available for your Texas Mortgage and Home Loan needs!

John R Cannata    P#214.728.0449

NMLS # 322646

Texas Home Loan Expert

Frisco TX Mortgage

      

 

The views expressed on this site are mine alone and do not reflect the views of my employer.

Comment balloon 10 commentsJohn Cannata • October 28 2009 09:31PM

Comments

Good advice, John.  If they need an agent in Arizona, have them call ME!

Posted by Sandra Scott, REALTOR of Choice! Payson, Pine & Strawberry, AZ (DPR Realty) almost 9 years ago

Sandra - I added you as a contact now. Thanks for volunteering. :-)

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) almost 9 years ago

Due to declining market designation for my metropolitan statistical area (greater Chicago land area and Northwest Indiana), clients have to be prepared for 10% down payment for conventional loans plus all the aforementioned items. It still amazes me how unprepared home buyers are when it comes to the amount of funds necessary to purchase a home with all the information available to them about the process.

Posted by James K Barath, CMPS, FICO Pro, Certified Military Housing Specialist (LeaderOne Financial Corp.) almost 9 years ago

James - You are very right about being prepared to have more money down. I had a buyer recently that had to come up with an additional 5% down because the appraisal was marked as 'declining market'. Luckily this buyer had the funds, but thats not the case most of the time. Most buyers prepare the down payment, but thats about it. Many seem to forget that you have to have money in the bank when all is said and done. The lender wants to know you can make a payment if you lose your job tomorrow.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) almost 9 years ago

You put some awesome consumer posts out lately. Good job, John!

Posted by Loreena and Michael Yeo, Real Estate Agents (3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co.) almost 9 years ago

Thanks Loreena. Looking over past posts, I don't have enough of them so I'm trying to build it up a bit. Hopefully that will lead to more readers, more reblogs, more business. :-)

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) almost 9 years ago

I'm doing the same thing on mine. I really should be focusing more on hyper-local blogging.

Posted by Loreena and Michael Yeo, Real Estate Agents (3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co.) almost 9 years ago

We can discuss ideas on Tuesday. :-)

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) almost 9 years ago

Great list of easy to understand elements to buying a home in TX John!

Posted by Karen Otto, Plano Home Staging, Dallas Home Staging, www.homes (Home Star Staging) almost 9 years ago

Thank you Karen.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) almost 9 years ago

Participate