If you own your own business, chances are you have a limited liability company (LLC) or, at the very least, you know what that is. Business owners may choose to buy a home using an LLC or under
Costs To Buy With Financing
Buying a home entails numerous upfront costs. Some are paid out-of-pocket after the seller accepts your purchase offer, while others are paid at closing. Here are 7 Associated Costs of Buying a Home you should consider before making the purchase.
Earnest Money. Earnest money generally ranges from 5% to 10% of the home’s purchase price, depending on local market conditions and the seller’s preference.
Down Payment. Typically ranges from 3.5% (FHA loans) to more than 20% of the purchase price.
Home Appraisal. Lenders require a home appraisal prior to approving the loan. Appraisal costs, typically $300 to $500.
Home Inspection. The cost is similar to the appraisal and is usually paid at the inspection.
Property Taxes. This expense varies widely based on your local tax rate and the closing date. You could be responsible for nearly six months of property taxes, or practically none.
First Year’s Homeowners Insurance. Costs vary based on the value, style, location, and contents of the home, as well as your credit score.
Other Closing Costs. Other closing costs include loan origination charges, credit report fee, flood certification fee, lender’s and owner’s title insurance, recording taxes, state and local transfer taxes, first month’s mortgage interest, and closing fee. As a rule of thumb, you can expect your total closing costs to range from 2% to 4% of purchase price.