From Vision to Reality: Housing Equality for Northern Virginia's Future
Greetings Virginia's Non-Profit Teaches Virginians How to Attain Quality, Affordable Housing.
UPCOMING WEBINAR:
How to Buy a Home with Little or No Money Down
Without Being Concerned You Bought the Right One,
Concerned About Finances,
or Fearful of the Economy.
During this class, you will learn:
Home Buying Class
How to Beat the Market Interest Rates
The New Way to Secure a Lower Interest Rate Without Draining Your Savings
Home Buying 101
Buy vs Rent - Rich vs Poor
How to Get a Better Interest Rate - And Have the Seller Pay For It!
WHAT WE DO:
Empowering Affordable Housing Solutions:
We are committed to empowering low- and moderate-income Virginians with the knowledge and skills they need to secure quality, affordable housing.
Comprehensive Education and Guidance:
Our program offers a comprehensive approach to housing education. We understand that the journey to finding quality, inexpensive housing can be daunting, which is why we provide step-by-step guidance.
Building Strong Foundations:
We believe that access to stable housing is the foundation for building strong communities. Our program not only focuses on immediate housing needs but also emphasizes the long-term benefits of housing stability.
What to Budget When Buying a Home
THE COST OF BUYING A HOME
When purchasing a house, there are various financial considerations to consider. One crucial aspect is understanding the closing costs and debits associated with the transaction.
Upfront Expenses of Closing Costs
Before closing on a property, two primary closing costs typically require upfront payment: the home inspection and the appraisal.
The home inspection ensures the property is in good condition and free from significant issues. On the other hand, the appraisal determines the property's market value.
HOW MUCH IS A HOME INSPECTION AND HOME APPRAISAL?
The home inspection may range from $350 to $500, while the home appraisal will be around $500.
While most lenders require these costs upfront, it's worth noting that there are exceptions, as some lenders offer programs that allow you to settle the appraisal fee at closing.
Extra Costs You Have to Pay at Closing
Debits are financial obligations that arise from certain recurring expenses associated with the property.
It's essential to understand the distinction between closing costs and debits. Closing costs encompass various expenses related to the transfer of ownership, while debits come from the funds you provide at closing.
HOW ARE DEBITS CALCULATED?
For instance, property taxes may be due every six months, and let's assume they amount to $5,000 per year for illustrative purposes. Suppose you purchase the property on March 1st.
In this case, you would be responsible for paying the taxes from March 1st to June 1st, which would be half the annual amount. Consequently, at closing, you would reimburse the seller for their share of the taxes for that period.
What is an Escrow Account?
Lenders often establish escrow accounts to simplify the payment of recurring expenses, such as property taxes and insurance. A portion of your monthly mortgage payment goes to these accounts. For instance, if your monthly mortgage payment is $2,500, a percentage will go toward taxes and insurance.
WHY LENDERS CREATE AN ESCROW ACCOUNT
By maintaining an escrow account, the lender ensures that your insurance and taxes are paid promptly on your behalf. Lenders do this because the house is collateral for the mortgage, and the lender must protect their investment. Failure to pay insurance premiums or property taxes could compromise the lender's collateral in unforeseen circumstances like fire.
Building Better Tomorrows
Greetings Virginia Non-Profit for Quality Housing
