Lehigh Valley Real Estate - Tips 4 Homeowners, Buyers & Agents

That is a loaded question.  But, Let's take at an Example Situation.

There are many Things that will determine How Much Money you will need to purchase a home.

Here are the Things that will determine How much money you will need to purchase a home. We will assume you are going to financing your home for this example.

1)       How much money do you feel comfortable with paying on a monthly basis? TOTAL? I ask this because I really do not care what you can get approved for, most buyers I work with can get approved for much more than what they feel comfortable paying on a monthly basis.  SURPRISE!  I will actually make sure to only show you homes that fit your monthly payment comfort zone!  ALSO: This total will include Real Estate Property Taxes and Homeowners Insurance, because this is the total cost associate with paying a mortgage.

2)      What interest Rate will you be offered based on your personal qualifications?

3)      How many years are you interested in financing your home?

4)       How much money are you going to put down on your new home?

5)       Are you going to get home inspections to make sure the home you are purchasing is a solid investment?

6)  What is your mortgage company charging you for the appraisal, application fee, and other fees for providing you with the loan.  ALL MORTGAGE COMPANIES AND BROKERS CHARGE DIFFERENT FEE'S.

7)       What costs are associated with the Title Company you will be using?

Please keep in Mind that every Buyer is different in relation to the interest you will be offered on a loan.  In order to disclose what type of fee's, out of Pocket costs, down payment and closing costs you can expect when purchasing a home...the following EXAMPLE will give you an idea.

BASE ON OUR EXAMPLE HERE ARE THE NUMBERS WE WILL USE FROM THE QUESTIONS ABOVE.

1)      Monthly Payment Limit $1580.00 = 200,000.00 Purchase Price Limit

2)      The Property Taxes Total 2800 per yr & Homeowners Ins Total 650 per yr                                                   

3)      Interest Rate will be Fixed 6.25%

4)      The home will be financed over a 30 year Term

5)      This buyer is going to put down the least amount of money and Go with FHA.  2.25% is required to come from the buyer's pocket = 4,500.00

PLEASE NOTE: Because there is less than 20% down payment Mortgage Insurance will be required.  For FHA this is estimated at .5% of the loan amount. $82.00 per month

6)      This smart buyer is getting a home inspection, termite, Water & Septic Test: $400.00

7)      Based who I recommend, Allied Home Mortgage Fee's: Appraisal =$350.00 NO APPLICATION FEE, No credit report Fee....Pre-qualification is at NO CHARGE.  She will also compete with other quotes you get and beat any offer you get if she can! 

8)      These fee's are only due at settlement and are state regulated.  The important factor here is that you work with someone you can trust will get things done and has excellent follow-up skills, Like Sonya at Light House Abstract.

SO WHAT DOES THIS ALL MEAN!!! Okay let's look at the numbers now

Total Costs on Settlement Day

Purchase Price = $200,000.00

Closing Costs = Rule of Thumb Average 5% of the purchase price = 200,000 x 5% = 10,000.00 (LET'S SAY we can get the seller to help pay some of this.  In a Buyer's market $5,000.00 no problem, maybe even 6,000.00 at this point it does not matter how they do it.  Just that you only have to pay $4,000.00 of this)

Down Payment = 2.25% of purchase price = $4,500.00

Loan Amount = 195,550.00, 30 yr Term, 6.25% interest                                                                     

Monthly Payment: 1574.00 (Mortgage Ins, Homeowners Ins, Property Taxes, Loan all in here)

BOTTOM LINE - You will need a TOTAL OF $8,500.00 to purchase this home on settlement day.

NOW to make it more confusing....SOME OF THESE FEE'S AND CHARGES ARE PAID OUT OF POCKET before Settlement.  All that is important here is that you know what the totals are above and you are comfortable with them!  Then the next most important item:  IS you know how much money you need in your bank account and when you need to release the money, RIGHT? No surprises Here when it comes to your money!  Hey, can you see why you may need MY HELP YET? CONTACT ME I will do all this for you!!!  But, let's continue to the OUT OF POCKET COSTS before settlement day.

OUT OF POCKET COSTS before Settlement.

1)      Your Good Faith Deposit when you make your offer.  No less than $1,000.00 (yes it comes off the total you will be need to bring to settlement above) so, now you bring $7,500 instead of $8,500.00.  The more money you put down at this point the better! You will get it back if you and the seller cannot come to an agreement on the sale.

2)      $400.00 for the Home Inspection, Termite, Water & Septic Testing

3)      $650.00 for 1^st year of Homeowner's Insurance - Not due until 2 weeks prior to settlement

4)      $350.00 for the appraisal (this fee is different depending on your mortgage Co. some make you pay it upfront.  Allied Home Mortgage allows you to pay this at settlement, but I like to have my client's have this in their account when they make an offer, just in case.)

TOTAL OUT OF POCKET FEE'S = $2,400.00 based on this situation.

I hope this information was helpful

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There are a few options for Buyer's in Lehigh & Northampton County.  I believe this is the best kept secret in the Lehigh Valley Area when it comes to helping buyer's with purchasing a home.  Currently there is little marketing for this program, in my opinion and the requirements you must meet to participate with the programs are worth checking out.

    HOOP Program = HomeOwnership Outreach Program - Local Lehigh Valley Program

This Program is offered by the Neighborhood Housing Services of the Lehigh Valley, Inc.  239 North 10^thStreet Allentown, PA 18102 610-437-4571 ATT: Rosa Gomez Home outreach Coordinator.

Lehigh County Area Program Features: Without getting too detailed. Depending on your income and family size, they will help subsidize down payment and closings costs for purchasing homes in Lehigh County (Schnecksville, Egypt, Coplay, Catasauqua, Fountain Hill, Coopersburg, Whitehall, Emmaus, Trexlertown, Macungie, Alburtis, Wescosville, Fogelsville, Salisbury, Slatington etc.)  Properties in the cities of Allentown and Bethlehem are not eligible for this program.  Lending Institutions must provide 95% of the purchase price.  The HOOP program will provide the remaining 5%, plus all the closing costs at 0% interest, with the exception of private mortgage insurance and no more than one point.  The HOOP loan will be 100% forgiven after 5 years of ownership occupancy!  THERE ARE OTHER QUALIFICATIONS FOR THIS PROGRAM. Please contact me if you would like to get pre-qualified for this program or would like my guidance in purchasing your future home.

Allentown, Bethlehem, Easton and Northampton County Program Features:Without getting too detailed.  Depending on your income and family size, they will help subsidize down payment and closing costs for purchasing a home in the City of Allentown, City of Bethlehem, The City of Easton and Northampton County.    Lending institutions will provide 90% of the financing.  The HOOP program will provide the remaining 10% plus closings costs. The HOOP loan will have an interest rate of 3% with a max term of 30 yrs.  Upon sale of the property, the balance of the HOOP loan and any interest and late charges accrued must be paid to HOOP.  The HOOP funds will be secured as a second lien mortgage.  THERE ARE OTHER QUALIFICATIONS FOR THIS PROGRAM.

Lehigh & Northampton Over 80% (higher Income Limits) Program Features:Without getting too detailed.  Depending on your income and family size, they will help subsidize down payment and closing costs for purchasing homes in the cities of Allentown, Bethlehem, Easton and the counties of Lehigh & Northampton. You must get a loan from a lender for 95%, qualified applicants are eligible to receive 5% loans for the remaining 5% of the purchase price plus closing costs.  The loans will have a max term of 30 yrs and will be secured as a second lien mortgage.  Upon sale of the property, the balance of the loan and any interest and late charges accrued must be paid to HOOP.  THERE ARE OTHER QUALIFICATIONS FOR THIS PROGRAM. Please contact me if you would like to get pre-qualified for this program or would like my guidance in purchasing your future home.

MORE BLOGS COMING: - UPDATED: 10-17-08 They are here! Click below!

1) PA State Programs

2) The First 5 Steps in Buying a Home.

3) The Just Looking Stage

4) Does Anyone have Morals & Values in Real Estate?

5) Lehigh Valley MLS - The only Interactive Home Search

I hope this information was helpful!

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Are you thinking of MOVING to The Lehigh Valley area? Click Here for a 6 min Video Introduction                             

The Lehigh Valley region of eastern Pennsylvania is made up of Lehigh and Northampton Counties and is home to the three cities of Allentown, Bethlehem, Easton, as well as numerous townships and boroughs with more than half-a-million residents, it is the third largest metro region in the state.

REAL ESTATE in the Lehigh Valley Area: I specialize in helping Buyer's Only!  http://www.myhomehunter.info/

TRAVELING to and From the Lehigh Valley Area: Our Location makes it the gateway to Eastern Pennsylvania, Located less than two hours from New York and an hour from Philadelphia, the area is accessible via I-78, AND I-476, AND Routes 22, 309, 33.

Come Back to my Blog often, as I will continue to add our individual townships and boroughs complete with photos for your viewing pleasure.

I hope this information helps.                                                                                           

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