Your most burning homebuying questions, answered right here! Finance fundamentals can be complicated, so we’re happy to break it down in this week’s blog. From down payments to mortgages to common mistakes homebuyers make, get the answers you need most.
Let’s Start With The Basics
How much should I save for a down payment?
Conventional loans require a minimum 3% of the home purchase price. When placing 20% down on a Conventional loan, you avoid the need for Private Mortgage Insurance. FHA loans require as little as 3.5% down. Some VA and USDA loans offer no down payment options for eligible buyers.
What Is An Interest Rate And How Does It Affect My Monthly Payment?
An interest rate is the cost you pay to borrow money from a lender. It’s shown as a percentage and is added to your monthly mortgage payment.
Okay, So How Much Home Can I Afford?
This depends on your income, monthly expenses, and how much you have saved for a down payment. Our Affiliated Lender, Taylor Morrison Home Funding, can give you a personalized picture of what will work for you.
What is the difference between pre-application and loan approval?
A pre-application is a quick estimate about your income, debts, and credit and not a commitment to lend or guaranteed offer of any specific loan program. It gives you an idea of how much you might be able to borrow. A loan approval is a more thorough process where the lender verifies your financial documents and credit. You are required to cooperate in providing certain required support within the timeframe necessary.
What Are Closing Costs And How Much Are They?
Closing costs are the fees and expenses you pay when finalizing your home purchase. They cover items like origination charges, appraisal, title insurance and taxes. Typically, closing costs range from 2% – 5% of the home’s purchase price.
Rent Vs. Own
How Does Renting Vs. Buying Compare Financially In The Long Term?
Renting
Paying monthly rent without building ownership. Rent can increase over time, and you do not build equity or receive any applicable tax benefits.
Buying a Home
The chance to build equity in a property you own. Owning a home can turn your monthly payments into an asset for you.
Mortgage Types
- Conventional: Standard financing option without government backing.
- FHA: Government-insured financing with a lower down payment and flexible qualifying guidelines.
- VA: Available to eligible veterans and active-duty service members, often with no down payment.
- USDA Financing: Offered at select communities, finance up to 100% of your home, helping you keep more cash in your pocket.
Beyond the Basics
What Is A Rate Buydown?
A rate buydown is when you pay extra money upfront to get a lower interest rate, compared to market average, either for the first few years or the life of your loan. Taylor Morrison, through our Affiliated Lender, Taylor Morrison Home Funding, will cover the cost to buy down your rate.
What Is An Earnest Money Deposit? What If I Can’t Afford The Earnest Money Deposit Upfront?
An Earnest Money Deposit is the money you put down when you sign a contract with Taylor Morrison. It shows you’re “All in!” This deposit is not an extra fee—it will be applied towards your closing costs/down payment at closing. We also offer simple and easy customized installment plans for your Earnest Money Deposit, no stress required.
Please ask your Community Sales Manager for details.
Ahead Of The Homebuying Game
What Are Common Mistakes First-Time Buyers Make?
Not Understanding What You Can Afford
Many buyers guess their budget. Pre-apply today with our Affiliated Lender, Taylor Morrison Home Funding, and understand exactly what you can afford.
Waiting Too Long To Start The Process
Inventory can move quickly. Starting now with Taylor Morison means you get access to new releases, incentives, and expert guidance.
Overlooking New Construction Benefits
With our Affiliated Lender, Taylor Morrison Home Funding, you get brand-new, energy efficient homes with modern features that no one else has lived in. Plus, our incentives can get you lower rates and lower monthly payments!
Not Thinking Long Term
At Taylor Morrison, our communities are thoughtfully designed for livability, growth, and resale value, so you’re not just buying a home, you’re building your future.
Thanks For Reading!
We hope this article answered your questions and brought you some peace of mind. Be sure to bookmark, reference, and share with your friends. Pre-apply with our Affiliated Lender, Taylor Morrison Home Funding, today!
*Taylor Morrison Home Funding, Inc. NMLS #8588, 495 N. Keller Rd. Suite 550, Maitland, FL 32751. Licensed locations: AZ: #0917436 | CA: DFPI #4130023 | CO: Registration #8588, PH# (866) 3795390 | FL: MLD1920 | GA: #52654 | IN: #DFI-66890 | NV: #3938 (branch located at 1820 Festival Plaza Dr., Ste. 220A, Las Vegas, NV 89135 PH# 702-680-1085) | NC: #L-191654 | OR: #ML-4272 | SC: #MLS-8588 | TX: #8588 | WA: #CL-8588 | www.nmlsconsumeraccess.org. Buyer is not required to finance through Affiliated Lender to purchase a home; however, buyer must elect to utilize the services of Affiliated Lender and the services of Closing Agent suggested by Seller only to receive certain promoted incentives as outlined in Buyer’s specific Purchase Agreement, which may differ by time, home selected, community and jurisdiction or contain other qualifying criteria. All loans are subject to underwriting and loan qualification of the lender. Services not available in all states. Rates, terms and conditions offered are subject to change without notice. Taylor Morrison Home Funding, Inc. is not acting on behalf of or at the direction of HUD/FHA or the federal government. Additional license information available at NMLS Consumer Access: www.nmlsconsumeraccess.org. All information (including, but not limited to prices, views, availability, school assignments and ratings, incentives, floor plans, exteriors, site plans, features, standards and options, assessments and fees, planned amenities, programs, conceptual artists’ renderings and community development plans) is not guaranteed and remains subject to change, availability or delay without notice. Any community improvements, recreational features and amenities described are based upon current development plans, which are subject to change and under no obligation to be completed. Maps and plans are not to scale, are not intended to show specific detailing and all dimensions are approximate. Prices may not include lot premiums, upgrades and options depending on stage of construction. Community Association or other fees may be required. This communication is not intended to constitute an offering in violation of the law of any jurisdiction and in such cases our communications may be limited by the laws of your state. Please see a Taylor Morrison Community Sales Manager or Online Sales Manager for details and visit www.taylormorrison.com for additional disclaimers. For our Age Qualified Communities only: At least one resident of household must be 55 or older, and additional restrictions apply. Some residents may be younger than 55 in limited circumstances. For minimum age requirements for permanent residents in a specific community, please see Taylor Morrison Community Sales Manager for complete details. This information is not intended in any way as financial, securities, insurance, tax or legal advice or services and in no event should it be construed as a commitment to lend; you should consult your lender. © Taylor Morrison, Inc. and its affiliated selling entities (“Taylor Morrison”). 9749
