Before beginning your Lake Charles Home Search take the time to speak to a lender and a Lake Charles REALTOR®.
You need to speak to a lender FIRST to know how much home you can afford. You don’t want to have your heart set on a $200,000 home, only to discover that you can only afford a $175,000 home.
I cannot stress enough the importance of contacting a lender first to get pre-qualified. If you’re unsure of where to go, ask your REALTOR®, for his/her recommendation of lenders. REALTORS® know from experience which lenders are reputable and responsible.
You are probably going to have a lot of questions and that is understandable. By speaking with a mortgage professional you will know what type of loan you may qualify for.
Do your homework ahead of time, educate yourself, and surround yourself with caring professionals, and you will have a smooth home purchase experience.
What is a Mortgage Pre-Qualification?
A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you’ll be able to finance and what your monthly payment will be. A pre-approval also reassures the seller that you have the financial means to purchase his or her home.
Knowing what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. The price you can afford to pay for a home will depend on several factors, such as: gross income the funds you have available for the down payment, closing costs and cash reserves required by the lender your debt your credit history and the type of mortgage you select with current interest rates.
Typically if you are purchasing a home within the Lake Charles City limits, you are going to be obtaining an FHA loan to purchase your Lake Charles, LA home. FHA requires a 3.5% down-payment. This can be gifted from a relative. There will also be closing costs associated with your loan. You can ask the Seller to pay some of your closing costs, but they can not assist with your required down payment. 100% Rural Development loans are available within eligible areas are ( Westlake, Carlyss, Iowa North Sulphur and South of Gauthier Road in Lake Charles ) income limits do apply to Rural Development Loans. All areas of Sulphur LA are now eligible for Rural Development financing effective May 6, 2014
When purchasing a Lake Charles Home Your up-front out-of-pocket expenses will include:
Deposit money – a good rule of thumb is typically 1% of sales price
*Estmated Appraisal amount ($495)
*Estimated Inspections ($300-$400)
*to be verified by lender and/or home inspector
Your lender can provide a Good Faith Estimate to show what other expenses you can expect or may have.
Meet with your local mortgage professional and see what he or she can do for you.
This step is critical, so start here first. You must be pre-approved before you enter into a contract to purchase a home.
The COST of a home is dramatically impacted by the mortgage component.
Calcasieu Parish Mortgage Credit Program
There is a program from the Calcasieu Parish Trust Authority called the MCC Program (Mortgage Credit Certificate) This is a grant from the Gulf Opportunity Zone Act that placed five parishes of Imperial Calcasieu in a federally designated targeted area. The maximum limit of the home purchase price is $316,177. There is no first time home buyer requirement. The income limits for Calcasieu and Cameron Parish are $65,280 for a family of less than 3 and $76,160 for a family of 3 or more.
A Mortgage Certificate Credit may save you up to $2,000 a year. Simply put, it is a reduction of the federal taxes you owe. Ask your mortgage professional to discuss the MCC Credit available.
Don’t Buy That New Furniture until After Closing
With many of today’s buyer’s purchasing homes at the high end of what they can afford, there is not a lot of room left in their debt to income ratio. Deals have been lost a few days before closing on a home because the lender did a final credit check and found thousands of dollars of new purchases charged on credit cards. It is better to wait until after you close on your new home to make any major purchases!
Copyright 2015© Marilyn Boudreaux
Marilyn Boudreaux, REALTOR® 337-499-9592
Century 21 Mike D. Bono & Co.’s
4410 Nelson Road
Lake Charles, LA USA 70605