NewMrs7312
LIF Adult
Member since 12/12 977 total posts
Name:
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Purchasing a home
Any "hidden" costs to consider? We want to make sure we have enough in savings. Obviously our down payment, but then lawyer fees, real estate fee, inspector.......anything else?
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Purchasing a home
Closing costs encompass a lot of different fees, title fees and insurance, appraisals etc...once you secure a mortgage usually they'll give you a rough break down of what everything will cost broken down, but sometimes small things can come up, but haven't heard of anything major that would break the bank! good luck!
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Re: Purchasing a home
I think that you should consult with a loan officer about your specific situation to see what would work best for you (in terms of down payment and loan options, what you can expect to pay in closing costs). Then, you'd have a better sense of what you need to do, in terms of cash saved, but also other things that you may or may not need to worry about (credit, debt-to-income ratio, whether you will be paying pmi and roughly how much, what type of interest rate you can expect, etc.) before you buy.
Yes, closing costs are a biggie - you can usually assume 4% to 6% of your mortgage amount. Closing costs on the average priced homes in the areas I sell are usually $15,000 to $20,000.
That doesn't include your attorney's fee (which is usually in the range of $800 on the low end to $1500 on the high end... $1200 is around average, imo).
Also, "closing costs" usually refer to costs associated with your loan (and a lot of that is prepayment of taxes, insurance, etc. into an escrow account your lender will use to pay your monthly expenses), and not other incidental costs at closing. For example, at the closing table you may need to write a check for oil that is left in the oil tank, if the home has oil. Those type of adjustments are made at the closing table, too. And there is a fee paid to the title closer - usually a couple of hundred dollars ($200-$250).
Yes, you will need a home inspection - the fee is usually somewhere around $500, so not huge.
As others have said, as a buyer, you don't pay a real estate fee.
But I do think that you have to factor in other things like moving expenses, furniture... also, you don't want to drain all of your cash reserves when buying a house.
Let me know if I can be of assistance, in terms of recommending a good mortgage lender or just discussing the home buying process! I would be happy to consult with you about your plans, options, etc.
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