REAL COSTS TO BUY A HOUSE
There is more to buying a house than the down payment. If you are a first time home buyer you might not be aware of all the other costs associated with purchasing a home. In the video we will go over what they are, what they are going to cost you and how to avoid them.
Buyer agent transaction fees - this is a fee that not all brokerages charge but its basically an upfront fee that they charge to weed out tire kickers. est cost $0-$500
Inspection fees - This is paid to the person doing the inspection on the property. They look for defects and deferred maintenance on the home. I would recommend anyone buying a used house should get an inspection done. Cost very depending on size and scope of the inspection. est. cost $200-$1000
Appraisal Fee - If you are getting a loan the bank is going to require that you get an appraisal done to verify that the home is worth the amount they are lending on. This fee has been trending up recently. est. cost $500-$900
Closing Cost - This will be your loan fees, title fees, and escrow fees all get lumped into "closing cost". est. cost 2.5%-3% of the purchase price (if you are getting a loan)
Down Payment - This amount depends on which loan program you are doing. RD and VA both start at 0%, FHA starts at 3.5% and Conventional starts at 3%. Remember if you put less than 20% on FHA and Conventional you will be subject to PMI fees.
How to reduce these costs
- Get an RD or VA loan
- Get an FHA or conventional loan with a down payment assistance program from your state
- Ask Seller to pay your closing cost
If you need help finding an agent in your area or if you just have some questions feel free to drop me an email [email protected]