My first day in the mortgage business was very exciting. I learned I could buy a home with an FHA mortgage with only 2.25% down payment! Average prices were $125,000 so I thought I could easily save up the money for that down payment.
Day 2 in the mortgage business wasn’t as exciting, in fact, it was a bit of a letdown. I learned that closing costs here in New York would be approximately 6% of the purchase price!
First day calculations to become a homeowner quickly went from saving $3,000 for a down payment to realizing I would need more than $10,000 for the down payment and closing costs! Back in 1989, beginning a new career after losing a good job, I knew this would be a real challenge, especially with the high cost of living here in New York City.
But then I learned about “Seller’s concessions.” When I made an Offer to buy a home, my real estate agent could negotiate to include some of my closing costs (up to 6%) into the purchase price of the home.
I translated my education into something I could use for my clients.
And I’ve been helping many of them the same way ever since: with different loan programs including the FHA program and its low down payment (today it’s 3.5%) and a Seller’s concession to help out with the closing costs.
I hit the streets in earnest, travelling to different towns in Long Island to survey property types and price ranges so that I could make the best decision possible as to where I would buy my first home. It was hard work, I will tell you! But it was an investment well worth the time because I knew I made the right decision when I finally bought my first home.
Next week: How I bought my first home in 15 minutes.
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