Welcome back to The Open House. Last week, we discussed budgeting and preparing your finances to purchase a home. This week, we are continuing the discussion with the focus on down payments, homeowners insurance, and closing costs. After you find your perfect home, put in an offer, get it inspected and appraised there are only a few more steps before you can get your keys. The next step is to begin preparing for your closing.

First, you want to make sure that you have your down payment ready and accessible for closing. The down payment is the money you will contribute upfront towards the purchase of your home. Most people think you have to put 20% down , but that is not true. There are many different types of loans that will allow you to put as little as 0-3% down. Your lender will provide the rest of the money for the loan at closing.

Once you’ve got your down payment funds together, you will need to purchase homeowners insurance.

Homeowners insurance provides you with financial protection over your home’s structure and belongings in the event of any damages or destructive events. This is required before the mortgage company will

finalize your loan. According to insurance carrier data, the average cost of home insurance is $1,312 annually for the dwelling and liability coverage of $250,000.

Once you have the homeowners insurance, the fun really begins! All your hard work is about to pay off as you enter the final step of your transaction, the closing. During the closing, you will sign a lot of paperwork (so have a little patience) and pay a cashiers check for all of your closing costs. Average closing costs for the buyer is between 2%-5% of the loan amount. After all the paperwork is signed and payments gone through, you can finally officially get your keys - Congratulations On Your New Home!

If you’ve been waiting to hear those words, reach out to me! I’d love to assist you and help make your dreams come true.

Falyn Davis

Buying | Selling | Leasing | Relocating | Apartment Locating

Cell Phone: 832-396-6276

Email: falynmdavis@gmail.com

Social Media: @falyndavisr