What Size House?
The first step toward buying a Lake Gaston or South Hill VA home for sale is planning. For starters determine how much house you can afford to buy and what your affordable price range is. Then seek out a mortgage lender to see if you qualify and get pre-approved for a mortgage, in advance.
To help determine just what size home you can afford, consider two things: how much you can afford for the monthly mortgage payment, and how much down payment can you afford. In most cases monthly payments will include principal and interest on the mortgage loan, and property taxes and insurance against fire and other hazards. Then in some cases, monthly housing costs may also include home owners association dues, condominium fees, and mortgage insurance. Both South Hill VA homes for sale and Lake Gaston homes for sale are affordable solutions for investing in Lake Gaston area real estate.
Determine what the current interest rate is from the mortgage lender. then calculate the monthly principal and interest payment. If an escrow account is set up with the lender for property taxes and home owners insurance, calculate both on a monthly bases and add that figure to the monthly principal and interest amount. Next determine how much money is needed for down payment. VA-backed mortgages sometimes require no down payment; whereas a down payment of 20% or more may be required on a conventional loan, which will eliminate the need for mortgage insurance. As a real estate agent on Lake Gaston, Connie Thompson, can assist you in determining just how much house you can afford and she can provide resources in the Lake Gaston community to assist with finding your South Hill VA or Lake Gaston Home for sale.
Sources For Down Payment
Savings accounts or proceeds from the sale of a property or home you already own are the usual sources for down payment. However other means are as follows:
Gifts from family members - Parents or family may consider making a cash gift to their children. Ask your tax advisor for current information. Lenders usually require a gift letter to verify that parents/family members don't expect repayment.
Life Insurance - Cash value on life insurance policies can often times be borrowed from your insurance company up to the amount of this accumulated cash value.
Stocks and Bonds - Possibly secure a bank loan using a stock & bond portfolio as security, or if need be cash in a few to assist with down payment.
Company Profit Sharing or Savings Plan. Although not a recommended, wthdrawing what you have in your profit sharing or savings plan account or borrowing against it, could be another source for down payment funds.
The larger the down payment, the less money you need to borrow and a lower monthly payment. But, remember that in addition to your monthly payment and down payment, money will be needed to pay for closing costs, moving, appliances, household setup, a reserve for family emergencies, and other miscellaneous items. So make sure you plan for all scenarios.