Down payment
You need to have a specific amount of cash to afford the loan you're planning to take out for one of the Miami homes for saleyou're planning to buy. In order to do so, you need to show your lender that your stellar credit score is coupled with a substantial deposit.
The down payment amount needed to purchase Miami homes for sale, or other real-estate properties, varies on the value of the home and the requirement of the lender. If you want better rates to go alongside your loan, be ready to pony up as much as 30 percent. In this tough economic climate, you have to back up your demands with enough financial muscle.
Earnest Money
After offering for the house, handshakes and smiles are not going to be enough to make the seller believe you are sincere – you need to put down cash, or in this case, earnest money. Home sellers will want buyers to be able to provide a sufficient amount of deposit on the house. There are several factors that affect the amount of earnest money. It pays to work closely with your agent throughout the process in order to avoid committing mistakes and learn just how much earnest money you have to put down.
Closing Costs
Aside from those two above, you also need to account for the closing costs. If you need the down payment to close on the house, you need money for the closing costs to close on your loan. Much of the closing-cost cash will enter the pockets of your lender. Typically, this cost will include the lender fees, which in turn, include loan origination and application fee, interest payment, credit-check fee, documentation fee, appraisal fee, and possibly, points.
Advance and Reserve Payments
Lastly, aside from the lender fees, Miami homes for sale buyers like yourself should never forget the escrow account. Lenders require their borrowers to insure their purchases. Prepare enough cash to cover the insurance and taxes for your home which will be placed in the escrow account.
Mark Michael Ferrer
Miami Homes for Sale
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