My wife and I are looking to buy our first home in the next couple months and wanted to get an idea of what we are looking at. Right now we have about 80k saved up and want to put 10% down on a home in our budget of $425k. We want to be able to use the extra money for buffer to fix anything down the road and stay "liquid". We also want to keep our monthly mortgage payment @ $2500 or less since my wife will be working less in the next few years.
We both have 800 FICO scores so I believe we will get a great rate but not sure how closing costs will be and what the PMI will be.
My questions are:
1 - Should we put more down than 10% to get out of PMI or should we keep the extra funds outside of 10% for rainy day, fixing up the house and/or buying furniture.
2 - Also what kind of loan would be looking at if we could only put 10% down and how do Points affect our loan? FHA etc.
3 - Where do the closing costs come from? Would it be rolled into our loan or should we expect to pay it in cash when we close? Also what can I expect them to be in the Northern VA area?
We are looking to meet with a realtor in the next couple weeks so any information would be a GREAT help.