Closing Costs vs Down Payment for First Time Home Buyer

Closing Costs vs Down Payment for First Time Home Buyer | CLOSING COSTS ON BUYING A HOUSE

Рет қаралды 18,798

Күн бұрын

The goal of today's video is to clarify closing costs vs down payment. You will learn the difference between closing cost and down payment, how to calculate closing costs and I will share some ways you can get your closing costs covered so that you can buy a house with less money out of your pocket!
0:00 Introduction
0:39 What is Down Payment?
2:08 What is Closing Cost?
2:47 What is the difference between Closing Cost and Down Payment?
4:07 How to calculate Closing Cost
6:07 How to save on Closing Cost
8:26 Summary
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Hi, I’m Nicole Nark, a full-time Realtor® at HomeWay Realty Realty in Little Rock. I came to Little Rock with the love of my life, I am a proud Mom of two furbabies (Mini Schnauzer Mix and German Shepard), a Graduate of Communications from the University of Arkansas-Fayetteville and Honor Graduate of Arkansas Real Estate School in Little Rock.
I believe that home ownership lays the foundation for a life of financial security and freedom.
From building equity in a home, to the tax benefits it provides, buying a home is the most important financial decision most people make during their life. For this reason it is important to work with a professional who is committed to act as an advocate for you and your best interests.
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Пікірлер: 49

@RiosToRiches 17 күн бұрын

One of the best videos I’ve seen regarding this topic, everyone else makes it so unnecessarily complicated

@marcusnelson1094 3 жыл бұрын

Thanks for sharing this. I benefited tremendously with the homebuyers program. My down payment that I had to come out of pocket with was minimum. The house I purchased was 107K. At closing I just needed like $3,500. My mortgage is $601 per month. Money well spent. 3bed 1 bath.

@NicoleNark 3 жыл бұрын

So happy to hear it Marcus!

@marcusnelson1094 3 жыл бұрын

@@NicoleNark Thank you. I appreciate it. God is good.

@evelyl6620 2 жыл бұрын

Wow in what state did u buy a house ?? In NJ that price for a house does not exist.. I wonder if zi should move out of state?

@tompetrone5934 3 жыл бұрын

Excellent Video Nicole ! It's very clear, and to the point. You are really good at explaining so many areas of Real Estate. Thank you!

@NicoleNark 3 жыл бұрын

Thank you Tom! Glad you found it helpful 😊

@endrisyimam6597 3 жыл бұрын

I just want let you know that I like the way you explaine the info what a gifted person you are I can listen you nonstop that much.thanks

@shapienails3067 3 жыл бұрын

I just had a problem with figuring out that VHFA wanted 3 % of a down payment. For some 3 % may not look that high, but you also have to come up with closing costs. So ya before you know it you're looking at $ 7000 or more out of pocket!!

@wardyrb 3 жыл бұрын

Thank you Nicole for making things plan and simple for those of us who don't understand the home buying process. As a 1st time buyer, your videos have been educational. Others make it complicated. I need you in Texas.

@NicoleNark 3 жыл бұрын

I am so glad you find my videos helpful! how is the home buying process going for you in Texas?

@nekilyablackmon1116 2 жыл бұрын

This video will answer my questions from another video. Thank you!

@Alessandro1983 8 ай бұрын

Hello Nicole. Great information! Initially, I was under the assumption that the 3.5% down payment for a FHA ( Federal Housing Association ) loan, contained the closing cost already in it. So in reality, an FHA loan doesnt really require 3.5%, its actually more like 10% down once the down payment & closing costs get added together ( more or less ). I appreciate the tips & tricks. I am a new follower!

@NicoleNark 8 ай бұрын

That is correct! Closing costs and the down payment are separate and you are responsible for both unless you can negotiate that the seller helps with your closing costs!

@mang1953 3 жыл бұрын

Application Fee/Credit Report Why should I be responsible for their cost of doing business? for example: if I purchase a car and finance it, no such expenses' are incurred by the me the buyer .yet both require title work, Inspection, personal property tax, credit reports, registration, etc. from my side of the eyeball these fees are nothing more that additional profit ! help me understand the logic

@YoungBamily 2 жыл бұрын

Yup, that’s the greedy, scandalizing world for ya.

@endrisyimam6597 3 жыл бұрын

I realy want to buy a house but I see it's just to much to handle specialy when no money saved for down payment and closing costs ha.

@FunnyVideos-mw3pz 3 жыл бұрын

Wonderful video thank you so much

@ktdin319 3 жыл бұрын

Love your videos! Thanks for sharing.

@NicoleNark 3 жыл бұрын

Thanks for watching!

@gabidouglas3813 2 жыл бұрын

I'm planning on buying my first property in 2022 & helping my hubbie build a Modular Home. We are going to use a 0% interest USDA Rural home loan in WA state. Dealing straight through the Gov. (No realtor). My family really appreciates the advice. Love all your videos!! ✌💜

@elizabethjorge2288 Жыл бұрын

i like u very much u explain very helpful u are very good of how we need help and explain every thing u need to know

@thelmakimble1113 3 жыл бұрын

Very informative!

@NicoleNark 3 жыл бұрын

Glad it was helpful!

@nancybthescratcher6327 9 күн бұрын

Thanks you 🎉🎉 I

@Abzii_ 2 жыл бұрын

Very nice video....... Very clear information

@NicoleNark 2 жыл бұрын

Thanks so much for watching!

@Stephaniesworld1212 3 жыл бұрын

If I use a USDA guaranteed loan how much will I pay in closing costs? And you mentioned an escrow account that needs to done with the guaranteed loan in your other video, is that apart of the closing cost? Thank you for your informative video.

@erichemard7066 2 ай бұрын

So the banks half is the down payment…regardless of the type of loan…the closing cost is usually 2-2.5% total…3-4% is with the agents/brokers commission tacked on.

@willdamian1066 7 ай бұрын

Very informative thank you. Is there down payment assistance programs out there? I didn’t take closing cost into account so looks like I have to take another 3-6% in account when purchasing

@StarQueen77 3 жыл бұрын

Love your videos

@NicoleNark 3 жыл бұрын

Thanks for watching them! I am happy to hear they are helpful!

@flynnmorrow6945 2 жыл бұрын

Yikes! I didn't realize how much closing costs would be!

@ortizaljuarismi 3 жыл бұрын

What if are using a conventional loan?

@adampro1797 2 жыл бұрын

I’m divorced single mom in my second home. I have good credit and did initially apply for the usda loan after my divorce 9 years ago. I was approved for the usda loan , however could not find the right one at that time so I was able to get an FHA loan for the home we are in now. The question I am wondering after these 4-5 yrs have passed, my goals have changed and is it possible to be a current home owner with an fHA loan and still apply for a usda loan to build or get out in another area? I hope I’m asking the right way. Thank you

@3Wrldcam 2 жыл бұрын

I have lil credit will FHA loan be a good choice for a 25,000$ home

@elizabethjorge2288 Жыл бұрын

please i need help for my down-payment i was pre-approved but need to apply for for gram government down payment how cant i get help because i am disabled with my son we both disable and they told me that to try with grant down-payment

@chprince1700 3 жыл бұрын

Conventional Loan information please

@ndayembidi6781 Жыл бұрын

So even USDA closing cost 3%?

@diptisworld4991 11 ай бұрын

Will you itemize closing cost ? What will be buyers will be paying at day of closing? Appraisal Credit fee Brokers fee Tital fee company Inspection charges

@diptisworld4991 11 ай бұрын

New Jersey

@josephinedankwa9558 3 жыл бұрын

Manufacturing homes any information

@thebestthinginmylife6205 3 жыл бұрын

Yes girl great question

@josephinedankwa9558 3 жыл бұрын

@@thebestthinginmylife6205 any information you can share I am thinking about getting one in couples of months

@thebestthinginmylife6205 3 жыл бұрын

Hey lady I have been on KZfaq all day yesterday trying to get as much information as possible. My husband and I have already found our home. So here are some tips on KZfaq that you might wanna watch later. Her name is Mobile Home Diva. And she on KZfaq and she gives you the 5 steps to purchasing a manufacturer home and land package. Also I seen a video on the FHA manufacturer and modular home loan idk if wanna try that. But everything helps since your about have your home in a few months. Good luck to you Afua Dankwa have an amazing day ❤️