[youtube https://www.youtube.com/watch?v=AU_RO-dw5fQ&color2=FBE9EC&version=3]

In this week’s Mortgage Minute Series, Travis Evans, a mortgage banker with Academy Mortgage, is back to continue discussing how to use a $5,000 buyer bonus incentive. This week, Travis talks about how to use that amount to lower out-of-pocket expenses.

The $5,000 buyer bonus is a great way to put money toward closing costs. This can include not only the lender fee and attorney fees, but it can also be a prepayment for items such as taxes, homeowner’s insurance and interest. Another way to save even more money is to close in the middle or beginning of the month and take advantage of an extended closing time. With the extended time, you won’t have to come out-of-pocket for the difference!

Additionally, the $5,000 buyer incentive can be used toward your down payment. For first time home buyers, Academy Mortgage is now offering a 3 percent down payment. This means that once a home buyer is approved, Academy will use the $5,000 in seller paid closing costs to cover most of the expenses, leaving just 3 percent remaining for buyers to pay.