You have found the perfect new home and are ready to go. Once you secure financing and get your closing date scheduled you are on your way!
There are a few things to keep in mind as you go forward. There are other costs when you purchase a home that you need to be aware of and plan for. O
Closing Costs
You are the buyer so your closing costs will be fairly low and the seller is picking up the tab for the commission and other large ticket items. Closing costs are typically 2-5% of the purchase price of your new home.
What is Included in the Buyer’s Closing Costs?
These expenses generally include a home inspection, if you elected to have one, the appraisal, your credit report, the recording of the deed and title insurance, a survey, and any notary fees and doc fees from the title company.
What Can You Expect to Pay Monthly or Annually?
Unless you elect to pay cash you will have a mortgage payment each mot\nth for your home. These will be the same every month and often include your property taxes and homeowner’s insurance.
Property tax payments are often included in your mortgage payment and your lender will hold them in escrow until it is time to pay the bill. These are based on your homes price and where it is.
Homeowner’s insurance is required by your lender, and will also be included in your monthly mortgage payment. Depending on your location you may also need to obtain Flood Insurance.
PMI or Private Mortgage Insurance is only required if you don’t put at least 20% down on your new home. This cost will go away once you have paid off a certain amount of your loan.
If you move to a neighborhood with a Homeowners Association you can expect to pay HOA fees. This is a certainty if you live in an over 55 community or a condominium. Your agent can advise as you are searching for your new home if an HOA is involved.
You will also have all the regular things that are involved in living. Utilities, cable tv, pool service, internet. It is best to have a budget and plan for all of those things.
If you are ready to purchase your first or last home, give me a call and I can guide you on the process and get you started on your plan for your next destination.