Spring Home Buying Advice
As the spring winds blow in, the home buying season starts to heat up too. Just remember to plan for the less obvious costs associated with your purchase.
Thanks to continued low interest rates and an abundance of newly constructed homes, there are definitely bargains to be found. Even with those bargains, doo you have enough in your account to handle closing costs? Do you have cash on hand for the appraisal, necessary inspections and earnest money?
Here is a quick breakdown of the costs you can expect during the home purchase process, how to minimize them and whether you or the seller will be expected to cover these expenses.
- Escrow fees.
- Title insurance, to assure the lender that the property has a free and clear title.
- Home inspection and any other inspections such as chimney, roofing or geological.
- Fire-insurance premium for the first year.
- Recording fees and notary fees for documents.
- Termite inspection and remediation of infestation or damage.
- Escrow fees.
- Real-estate commission.
- City and county transfer fees.
- Title insurance, to assure buyer of free and clear title.
- Homeowners association transfer fees and any unpaid balance.
- Home warranty.
- Any bonds, assessments or tax liens.
The total for these closing costs can vary anywhere from 1% of the purchase price to as much as 3% for FHA loans that require a mortgage-insurance premium and generally include additional lender fees.
Remember, many of these fees can be negotiable with the seller, so consider asking for a portion of the closing costs when you make the initial offer!