Dr. Stacey-Ann Baugh

I work with mostly first-time homebuyers who are not familiar with the process of buying a home and who may be confused about how much money they may need to be able to buy.

DOWN PAYMENT - The minimum down-payment is usually 3.5% of the purchase price. However, this can range from as little as 0% to as much as 20% of the price depending on the type of loan. There are some programs available that assist with down-payment. The Down Payment on your DREAM program in PG County is an example of a down-payment assistance program for first-time home buyers purchasing a vacant foreclosure in the County.

CLOSING COSTS - Closing costs are the costs associated with purchasing the home, acquiring the mortgage, purchasing title insurance, as well as any state or city taxes involved. These costs vary by location and depending on your mortgage arrangements but usually run between 3% and 6% of the purchase price. Sometimes arrangements can be made to have the seller assist the buyer with some or all of the closing costs.

EARNEST MONEY DEPOSIT - This deposit is submitted with the offer. The deposit is held in escrow and credited towards the buyer's down payment and/or closing costs. However, this check is cashed following acceptance of the offer. The seller may be entitled to the deposit if the buyer defaults on the contract. This deposit is usually a minimum of 1% of the purchase price and the amount may need to be increased in competitive situations.

HOME INSPECTION - This is paid for by the buyer at the time of inspection. The costs involved vary depending on the size and purchase price of the home but cost approximately $250-$500.

TERMITE INSPECTION - Many mortgages require a termite inspection. This can either be billed to the closing company and paid at the settlement table or paid for up front. The costs range from $35-$55.

OTHER INSPECTIONS - Any additional inspections that the buyer is interested in having done are paid for by the buyer. These may include radon inspections which can cost between $125 and $200, mold inspections, well water tests, septic system evaluations, chimney inspections, and anything else the buyer is interested in investigating prior to committing to purchase the home.

APPRAISAL - A few lenders will have the appraisal paid for at closing. However, many lenders will have the buyers pay for this up-front. That way if something goes wrong with the contract the lender is not stuck with the cost of the appraisal. This can vary in cost from approximately $350-$550.

If you are interested in learning more about purchasing a home or for more information about the down-payment assistance programs available in Prince George's County, MD don't hesitate to contact me.

The Annual Bowie International Festival will be held this Saturday, October 3, 2009 (rain date 10/4/09).

The Bowie International festival features performances of music and dance, food, and activities from all over the world. It is a great activity for adults and children, alike.

The Bowie Intenational festival will be held at the Allen Pond Park, 3300 Northview Drive, Bowie and will run from 11am - 5pm.

Come out and celebrate the diversity that makes our community so special.

Today is the 3rd Annual Angie Houtz Memorial Golf Tournament. This is one of the most nerve wracking mornings for me because I am constantly running through everything to make sure I did not forget anything major. The charity is near and dear to my heart since it honors my best friend and I want the event to be a huge success.

The one thing I can't control, the weather, looks good - partly cloudy and highs in the upper 70s. Great day for golf.

If you are in the Upper Marlboro area there's still time to play in the tournament, drop off a donation, or just come by to say hi and visit.

Tee off is at 1:00pm at the Oak Creek Club in Upper Marlboro, MD.

Of course, if you are not nearby, there is always time to mail in your tax deductible donation or donate online.

Wish me luck!