Hi everyone. Welcome back to our video blog where we are bringing you relevant information to make informed decisions in the marketplace.
Today, I wanted to speak more toward first time home buyers. I know a lot of you are excited to go out and look for homes and look online, but it’s really easy to find a home and fall in love with it. What some of you are forgetting, though, is about the financial aspect. The worst thing you can do is fall in love with a home and then be able to pay for it!
Most first time home buyers use FHA to purchase their home and only put 3.5% down. So, if you purchase a $200,000 home, you are only paying $7,000 out of pocket.
But what about the closing costs?
I wrote down a list of the typical fees during a closing. My numbers are a little on the high side, but it can give you an accurate view of how much things may cost.
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Attorney fees: $650
·
Title Search: $225
·
Home Inspection (Which I highly recommend): $550
·
Appraisal/Credit App: $450
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Tax Escrow: $3,600
·
Prepaid Interest: $400
·
Home Insurance (You will have to pay the first
year upfront): $960
·
Bank Fees: $600
Now as I said, many of these numbers are only the higher side, but they total to be about $7,500. So when you are making your down payment you need not only the $7,000 for the 3.5% down but to also include those closing costs.
FHA does allow you to add closing costs to the loan through a credit from the seller. We’ve seen this many times before.
If you have any questions about closing costs or want to know more about what closing on a specific property will cost give me a call at 203.980.6886 and I’d be more than happy to help!
