Mortgages & Programs

The very first step when buying your home here in Southwest Florida is finding out just how much house you can afford. Believe it or not, this is step alone will save you a ton of time and frustration in the end results. Why? because knowing how much home you can purchase you won't waste your time looking at homes that you can't afford. Knowing your budget and what you are comfortable paying for a monthly mortgage payment upfront will also ease your mind. Then you can narrow your search to show you homes which meet your maximum budget and below. You will also not get excited about a home and then find out you can't afford it and become disappointed, trust me I see this a lot in this business and this is one of the biggest ones.

Get Pre-approved then start shopping for homes you can and are comfortable being able to afford. It also makes the whole process a lot less stressful for you as well. Here is a list of Southwest FL Dream Homes Team preferred lenders.

Down Payments

The down payment is the total amount you will put down toward the purchase of the home outside or above what the bank is willing to lend to you. This is typically a percentage of the purchase price and depends on what you qualify for. There are all types of financing options and programs available to you, just depends on what payment amount you are comfortable paying as well as how much money you have saved for a down payment and closing costs. Many people think that most people purchase a home with 20% down payment, however, the truth is the majority of people are putting down as little as 3.5%, 5% and even 10% of the purchase price for the loan.

Closing Costs

Closing Costs are another amount of money you will need and to think about when purchasing your home. This is completely separate from the down payment we discussed above. Closing Costs are what the lender/mortgage broker or bank charges you for the loan from them plus other fees involved such as appraisal, title, and closing, recording of mortgage to State, processing fee, etc. This cost is typically 2-5% of the purchase price of the home and again in addition to the down payment.

Seller Concessions/Assistance

There are some programs available that offer Down Payment Assistance as well which you may qualify for. Some you may have to pay back, while others you may not. Another form of assistance can come from the Sellers of the property you are purchasing. The sellers can give you a credit towards your Closing Costs or pre-paid only at closing on the Closing Disclosure Statement in the form of a Seller Concession or Assistance. Also, your real estate agent can contribute a portion of their commission toward the same as the seller.

Types of Financing

There are two types of financing available and they are Conforming and Non-Conforming loans. The typical loan type you hear and see if conforming, meaning it meets and follows the rules and regs of the banks and government. These are loan such as Conventional where you put down 5%, 10%, 20% or more as your down payment. Then there are FHA loans which are Fannie Mae and Freddie Mac loans where the Government backs the loans and you put down 3.5% as a down payment, typically these are for First-Time Home Buyers. Then there are VA or Veterans/Military loans which are only for current Active or Past military and they are Government back and require no money down as a down payment.

Loan Programs that Give Back to the Community

Teachers - First Time Home Buyers Program

Nurses - First Time Home Buyers Program

Soldiers - First Time Home Buyers Program

Officers - First Time Home Buyers Program

Firefighters - First Time Home Buyers Program

Gov't Employees - First Time Home Buyers Program