Yes, You Can Save Money While Buying a Home – Here’s How
Purchasing a house is a thrilling advancement towards your future aspirations. However, despite your eagerness to proceed at full speed, the process of buying a home requires time, readiness, and naturally, finances. There exist various methods through which you can accumulate funds for a house, ranging from forfeiting vacations and downsizing to taking on additional jobs, but you can also adopt measures to save money while acquiring your upcoming home.
Moving can be a tough task, so if there's any opportunity to ease the financial burden, it's wise to make use of all the offers and programs available. To begin with, you need to determine the type of mortgage that suits you best. There are various options like FHA, VA, USDA, and conventional loans. Among these, conventional loans are favored by many homebuyers because they allow you to purchase a home with a down payment as low as 3%. Continue reading for valuable money-saving advice when purchasing a property.
Purchase With Rocket Homes
By collaborating with Rocket Homes for your home purchase and utilizing Rocket Mortgage for financing, you have the opportunity to receive a maximum of $10,000 in cash towards closing costs courtesy of Rocket Mortgage. This exclusive deal not only streamlines the home-buying journey but also has the potential to result in substantial savings amounting to thousands. Remember, this fantastic offer is exclusively available through Rocket.
In the final phases of your loan, the financial institution that provided your mortgage will cover the expenses for essential services like evaluating your home or checking for pests, as mandated by your state. These services are billed to you as part of the closing costs. However, if your lender offers you credits, they will shoulder these costs on your behalf. In return, you will have to pay a smaller amount initially but agree to a higher interest rate compared to if you were to pay the closing costs using your own money.
One of the main advantages of lender credits is that they enable you to finalize your mortgage loan without having to shell out a substantial amount of money in closing costs. Typically, the average home buyer spends around 3 to 6% of their loan amount on closing costs, which could easily accumulate to thousands of dollars. Nevertheless, it's crucial to understand that any credits you utilize will ultimately be paid through an elevated interest rate imposed by the lender throughout the duration of your loan.
Becoming a member of Rocket Rewards provides a convenient and uncomplicated method to reduce your closing expenses when obtaining a mortgage for your home from Rocket Mortgage. Here's how it works: At any stage during the process of purchasing a home, you can begin earning rewards by accomplishing tasks such as perusing enlightening articles, viewing instructive videos found on the Rocket Mortgage learning hub, or utilizing a mortgage calculator.
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Gift Letter: Simplify Your Gift-Giving
Have you ever received financial assistance from a family member to cover the expenses of a wedding or a car? Well, it turns out that the same can be done when it comes to making a down payment for a mortgage. According to Rocket Mortgage, lenders have a requirement to verify that the money used for the down payment belongs to you and is not an undisclosed loan. To meet this requirement, you will need to obtain a gift letter from the person who provided you with the funds. This letter will need to include their signature and personal details. A gift letter is a document that confirms that the money deposited into your account is a gift and not a loan. If you would like to learn more about how and when to use gift letters, you can find additional information here.
This blog was produced by SheKnows on behalf of Rocket Mortgage.
