The Day Company Financing
It is the aim of The Day Company and its Agents to provide access to financing that meets individual client needs. First and foremost, our objective is always to obtain the lowest possible rates available to you.
Contact Us to learn more about financing options available to you.
Home Financing Tips
Know your Budget
Set a budget. Calculate a monthly payment that you can comfortably afford. Then discuss this amount with your lender. Making sure you can meet your projected future home payment is probably the most important part of successful homeownership.
Include PITI (principal, interest, taxes and insurance) in your budget. Mortgage calculators will show you how much you'll pay towards principal and interest every month. Remember that you'll also have to pay property taxes and homeowners insurance. While you may not pay your taxes and insurance monthly, it's a good idea to set these funds aside each month and factor these costs into your monthly budget.
Know how much Cash you'll need at Closing
When you buy your home, you will need to pay a down payment and closing costs. The down payment typically varies from 5% to 20% or more. Putting less than 20% down will typically require you to pay for private mortgage insurance (see more on that below). Closing costs could be about 3-7% of the total loan amount, and will include charges such as loan origination fees, title insurance, and appraisal fees.
Budget for Private Mortgage Insurance (PMI)
For conventional financing, this is typically necessary if you don't put down at least a 20% down payment when you buy your home. If that's the case for you, you will likely need to pay private mortgage insurance (or PMI). Make sure you know how much this cost will be and factor it into your monthly home payment budget.
Research Projected Utility Expenses
If you're moving into a larger home than you're used to, a home that is newer or older than you're used to, or located in a climate that's hotter or colder than you're used to, ask your real estate professional to find out what the home's energy bills have typically been. This can help prevent being surprised by a higher utility bill than you're expecting. If you're moving into a new community, find out about water costs, as well.
Don't forget Miscellaneous Expenses.
Be sure to budget for moving expenses, as well as additional maintenance costs. Newer homes tend to need less maintenance than older ones, but all homes require upkeep. If you're considering a condo or a home with a homeowners association (HOA), remember to include HOA dues in your budget. In addition, keep in mind that you should have an "emergency fund" on hand to prepare for any unexpected changes in your income (like reduction in your wages) or unexpected expenses (like medical bills).
Manage your Debt carefully after your Home Purchase.
Sometimes your home will need new appliances, landscaping, maybe even a new roof. Planning for these expenses carefully can help you avoid one of the most common causes of missed mortgage payments: carrying too much debt. It's important not to overextend your credit card and other debts so you stay current on your payments.