WHAT IS EARNEST MONEY HOW MUCH SHOULD I SET ASIDE
Earnest money is money put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount.

HOW LARGE OF A DOWN PAYMENT DO I NEED
There are mortgage options now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you'll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you'll also need money for closing costs, moving expenses, and - possibly -repairs and decorating.

WHAT CAN I USE TO PAY THE DOWN PAYMENT AND CLOSING COSTS OF AN FHA LOAN
Besides your own funds, you may use cash gifts or money from a private savings club. If you can do certain repairs and improvements yourself, your labor may be used as part of a down 8 payment (called -sweat equity). If you are doing a lease purchase, paying extra rent to the seller may also be considered the same as accumulating cash.
... REGISTER BELOW TO GET EVEN MORE INFORMATION!

All Real Estate Articles

Instantly read the rest of this important information! Just fill out the form below and click the SUBMIT button at the bottom of the form. You'll automatically become a VIP Buyer and receive this report and unlimted access to over 75 real estate reports!   Your Contact Information  (Please complete all fields)   First Name: Last Name: Daytime Phone: Evening Phone:       E-mail: Home Plans Buying Selling None City: State/Province:         Copy The Word In The Image.

[ ..More About San Diego Closing Costs ]