Discover all of the costs associated with with buying a home.





Buying a home is a major investment. For most, it can be the most expensive purchase they will ever make. It's easy to overlook all of the unexpected expenses and costs of buying a home, and this can turn out to be a bit pricey UNLESS you have an agent who can explain these costs in detail so that you know what WHAT TO EXPECT.  






 What are the true costs of buying a home? 


 





The purchase price is only one of the items buyers look at when starting the process. And while the purchase price may be the biggest part of this transaction, it is far from the only cost buyers will need to think about. There can be other fees potential and expenses beyond your monthly mortgage payment. That's why it's imperative to find a Realtor and Lender that you can trust to explain everything in detail. 


 4 basic costs involved with buying a home



  •   Down payment

  •   Closing costs

  •   Inspections and appraisals

  •   Taxes and insurance





  1.  Down payment









The down payment counts toward part of the purchase price and it is one of the largest fees you will have to pay. This gets paid at the closing table. You will need to have this money easily accessible. 






What are closing costs?


 





Closing costs are fees that get paid to the lender, title company and possibly other parties due at the end of closing in order to complete the purchase. You can expect on average, to pay about 2-6 percent of the purchase price of the home. These numbers WILL vary based on the type of loan you decide on. 






Other costs prior to the sale: Inspections and appraisals


 





An appraisal is ordered by the lender, paid for by the buyer and completed prior to the closing in order to ensure the value for the bank. A home inspection is an option item that a buyer can elect to perform, at their cost prior to the closing. A good Realtor will strongly advise a buyer to complete a home inspection.






Taxes and insurance


 





Payments for property taxes and homeowner’s insurance are generally held in escrow and added into your monthly mortgage bill, for a combined amount that’s known as the PITI (monthly principal, interest, taxes, and insurance). Depending on when tax payments are due and what kind of initial payment your insurance company requires to initiate coverage, these rates may vary. 


 


Buying a home is one of the best financial decisions you can make. Let us walk you through the process and find you your perfect home! Contact us now!


Note: These may not be ALL of the costs associated with the home buying process.