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     FirstTimeBuyerEducation.com was started by Greg Lanet to give prospective first-time home buyers the information they need to make focused and reflective decisions regarding their real estate purchases. Greg, a real estate professional with many years and hundreds of transactions of experience says:

     "Today's first-time buyer is smart, well educated and demands the information needed to make an informed decision. They don't want anyone to sell them anything. They sell themselves based on relevant data."

     We are here to provide buyers with the tools to collect and evaluate that information.
     Greg Lanet
     Direct: 925.443.GREG
     Toll Free: 888.280.GREG
     Fax: 925.315.8512

For support or questions: greg@firsttimebuyereducation.com

First-time buyer family

How much money will I have to come up with to buy a home?

     This depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs:

Earnest Money -
The initial deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house;

Down Payment -
A percentage of the cost of the home that you must pay when you go to settlement; and

Closing Costs -
These are the costs associated with processing the paperwork to buy a house.

     When you make an offer on a home, and the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 to $2,000.

     The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time home buyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less.

     Closing costs - which you will pay at settlement - average 2-3% of the price of your home. These costs cover various fees your lender charges and other processing expenses.

     When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.