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Janie Carr
Janie Carr is a Plains Capital McAfee Mortgage home mortgage consultant, with offices at the corner of 13th and Ridge Road (7200 W. 13th, Suite 4). She has 21 years experience in the mortgage industry and is ranked among the top mortgage consultants in the Wichita area. Janie is an active member of the Wichita Area Association of Realtors and the Wichita Builders' Association. Janie is a member of the United Methodist Church. She and her family reside in Clearwater, where her children attend school. You may contact Janie at (316) 773-9500, or by e-mail at jcarr@mcafeemtg.com
Banking & Finance
2004-01-01 12:02:00
How much will I need?
:  How much money will I have to come up with to buy a home?
ANSWER:  Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: •  earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house. •  down payment - a percentage of the cost of the home that you must pay when you go to settlement. •  closing costs - the costs associated with processing the paperwork to buy a house. When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000. The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time home buyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less. With good credit scores, a buyer can structure the offer to purchase contract in such a way as to allow him or her to get a home bought and the loan closed with little or no out of pocket money. With interest rates at or below 6%, a 40+ year low, the financing should not be the reason a person does not own their own home. If your credit scores are less than perfect, there are lenders who specialize in making B or C loans to those buyers. Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, called a "good faith estimate", so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.
 
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