Louisville Kentucky Mortgage Loans

There are several reputable banks and mortgage companies in town. It is encouraged to get quotes from several to make sure you are getting the best deal.

Don’t forget First Time Home Buyers Seminar

I will be holding First Time Home Buyers’ Seminars over the next several months. Let me know if you are intersted and we will get you signed up.

Here is the Breakdown. Of course you will not have to save up every penny of the purchase price, but not a bad idea. The majority of the the purchase price typically comes from you mortgage. But here are some initial amounts you will need.

1. Good Faith Desposit- $500-$2500. This is given to the seller’s real estate broker at the time of your offer. If the offer is accepted, the Broker will deposit the check in their escrow account and hold it hostage until closing where you will be credited that amount toward down payments and closing costs. This puts a little skin in the game for the buyer, so they just don’twalk away from the deal for reasons not stipulated in the contract.

2. Down Payment- You may be looking at anywhere from 3.5%-20% of the purchase price for the down payment. The days of the 100% loans are but a distant memory, so start rolling those coins. FHA loans only requre 3.5% down and are the lowest down payment option for most folks.

3. Closing Costs and Pre Paid Expenses-here you are looking at about 3%-4% of the purchase price for closing costs (costs associated with getting the loan) and Pre-paid expenses (such as insurance, escrows for taxes and insurance if required).

4. Don’t forget about inspections-they are not always a required part of the purchase process, but I highly, highly without question, even on new construction encourage all buyers to have at least a Home Inspection and Wood Destroying Insect Inspection when they are buying a house. In Louisville, KY and the surrounding areas you should be able to get a home inspection done for $250-500, depending on the size of the house and $40-$50 for the “termite” inspection. These are usually paid to the service providers at the time of the inspections. Not at closing, so you will need to be prepared to scratch these checks, plus your Good Faith Deposit pretty soon after getting under contract, so at the very least, near that $1000 mark to get started.

The best way to get an accurate estimate of how much money you will need to get in to a house is to get pre-qualified with a mortgage professional and get a god faith estimate that breaks down the expenses and what your down payment will look like.