Buying your first home in Central Florida can be a daunting experience, especially when it comes to navigating the financial side of things. At Dream Builders Realty, we’re here to make sure you have access to the knowledge and expertise needed to navigate through every step of the home buying process. Our team of expert REALTORS® has the knowledge and experience necessary to help make buying your first home a smooth and exciting process. One aspect of the buying process that many first-time home buyers find confusing is closing costs- understanding what they’re paying for, negotiating which closing costs should be covered by the buyer and which will be covered by the seller, and why they’re paying these fees. Today, in the first part of our 'A Buyer’s Guide to Closing Costs' series, we're exploring three closing costs that are associated with your home loan and what they entail.
Origination Fee
Origination fees are a payment that is made to the lender to cover your credit evaluation and to underwrite and process your home loan.
Discount Points
Discount points are a fee that is paid to your lender when you close on your new home to reduce the interest rate over the life of your mortgage.
PMI (Private Mortgage Insurance) or Mortgage Insurance
This closing cost is required if the down payment on your home loan is less than 20%. PMI or mortgage insurance fees are set in place to protect the lender in the event you default on your loan.
Buying your first home in Central Florida doesn’t need to be an overwhelming experience. With the help of a knowledgeable REALTOR®, buying your first home can be a fairly simple process- it might even be a little bit fun.
While this may be your first time buying a home, your REALTOR® is an expert in the home buying process. Lean on them throughout your home buying journey and try to enjoy all the moments that lead up to holding your new house keys in your hand!
At Dream Builders Realty, we're equipped to help you through every step of the buying process and are ready to help you take your first steps to homeownership. For more tips on buying your first home and preparing for homeownership, subscribe to our home buyer email series today!
