Question: What are the hidden fees or costs associated with buying a home?
Answer:
*Always remember that each deal/transaction is different and can vary*….
With that being said I’ll walk you through what you can typically expect to pay when purchasing a home. A good rule of thumb is that your closing costs will be between 2-4% of the purchase price and that’s on top of your down payment.
Example: House is $450,000…Closing costs could range between $9,000 - $18,000 and then you have to add your down payment to that.
***Here’s what a GREAT Realtor (like myself) can do for you. I can negotiate to have the SELLER actually give you money towards your closing costs. You’ll still have to come up with your own down payment though.
Here’s a breakdown of what some of the closing costs look like for a homebuyer:
From the mortgage lender: Loan origination charge, points, admin fee, appraisal fee, underwriting fee, processing fee, pre-paid interest, etc…
Other related fees: title fee, doc preparation fee, home owners insurance (3-9 months upfront), property taxes (6-9 months upfront), HOA transfer fees, HOA capital contribution, VA/FHA funding fee (if applicable), recording fees etc…