Inspecting the physical condition of a house is an important part of the home-buying process and should be included in your purchase contract as a condition of closing the sale. It is important to
HOW MUCH DOES IT COST TO BUY A HOME WITH FINANCING
HOW MUCH DOES IT COST TO BUY A HOME 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.
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Article Source: Trulia Blog
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