Buying a home is a major lifetime accomplishment, but financing a home can be complex. As a first time buyer, you need to prepare for the different costs you’ll need to seal the deal. For expert advice on what costs to expect before you buy a home, contact us today.
The Down Payment
The down payment on your home depends on the price of the property. For example, if the price of the home is $300,000, and you’re required to give a down payment of 10%, you’ll need $30,000 but there are many programs that can lower the cash required. For veterans in particular, you may be able to qualify to buy a home with NO cash out of pocket!
The amount of down payment required depends on the type of loan for which you qualify. In Maryland, there are grants and special programs that may assist you with your down payment requirements. The Donnelly Group has a variety of resources and experts to help you with this process. Send us a message and we will help you find the answers you need!
Understanding Closing Costs
In addition to your down payment, most people don’t realize they also need money for the appraisal, home inspection and closing costs. Closing costs generally include items such as loan origination fees, a survey of the property, underwriting fees, title search fees, and title insurance. Closing costs vary from state to state based on tax regulations. In Maryland, each county has its own fees for state recordation and county transfer taxes. In general, it will range between 0.5% and 2% of the purchase price.
Maryland First-Time Home Buyers
If you are a first-time home buyer in Maryland, there are some programs that can help you reduce the amount of cash you need to buy a home. First, you are exempt from the state transfer tax of 0.5%. Second, the real estate commission is generally paid by the Seller. Third, you may be able to defray some costs by negotiating your offer with additional help from the Seller. The Donnelly Group has a dedicated Buyer’s Agent to assist Buyers with these questions.
The Donnelly Group has strategically partnered with a number of lenders to provide you the resources you need to get the answers you want! Contact us today and we’ll put you in touch with an experienced lender who can provide you all the answers you need!