Buying a new home can really hit you hard in the pockets. There are things that we never consider when its our first time buying a home, its all new. If you have a wonderful professional agent at your side, things should move smoother. Professional agents like the ones at Pink Door Management in the Orlando, Florida area have years of experience and can guide you through purchasing a home as your primary residence or for an investment property.
There are a lot of costs associated with purchasing a home. Fortunately, one of them is not the hiring of a real estate buyers agent. There are a lot of forms that will be required along with certain upfront fees. Often when a new buyer sees 100% financing, they are under the assumption that they can just go pick their dream home, collect the keys and move in. This is not the case.
Single Family Home
There are programs for some that live in what is considered rural areas and they may be eligible for USDA financing. There are income requirements, credit requirements and while it is geared towards lower to moderate income earners, it does not mean you just get the keys and move in.
While your financing may be covered if you are eligible, the sellers will still expect you to have some skin in the game. Most sellers will not remove their property from the market without some sort of earnest money deposit. Now keep in mind that you may pay this on the front but you can get it back if certain requirements are met. This is real estate and each seller has different requirements. Make sure your agent is well aware of how to protect your money should something happen and you must walk away from the deal.
After you have earnest money in escrow, there will be inspections and appraisals, these must be paid for upfront and they are non-refundable. The work is required by the bank but in most cases, they will not roll this into the loan. If you are serious about purchasing a home, these costs must be taken into account during the buying process.
Multi-Family Investment Property
This program helps low to moderate income earning families purchase rental properties. Again, there are specific guidelines to be eligible for this type of financing and the property must be in a USDA designated area.