When it comes to buying a house in the DC Metro area, the competition is at an all time high. It is typical for a property to have multiple offers from five different parties within the first week of the property hitting the market. Thus, it is critical to have competitive advantage over other buyers in all aspects of your offer package.
First off, what is private mortgage insurance (PMI)? Private mortgage insurance is a type of mortgage insurance that a buyer might be required to pay if they have a conventional loan. PMI is designed to protect the lender if the homeowner stops making monthly payments on the loan.
If you have been saving for years for a down payment to buy your first home, did you know that you also need cash at the time of closing to pay for the closing costs? So say you are saving to buy a $300,000 house and have saved 20% ($60,000) for the down payment. While that’s great, you will need to save more to pay the closing costs. The closing costs depending on the transaction vary from 2-5% of the final sales price. So for this example, 2-5% of $300,000 is $6,000-$15,000!
This week, I want to share a personal tip that I like to do with my clients that gives them REAL competitive advantage. As you probably know or have heard, the DC Metro area is crazy competitive when it comes to real estate so you truly have to have competitive advantage over the next homebuyer to be successful.
So what is this secret weapon??? Drumroll please…..