Today I want to talk to you about the costs that are associated with purchasing a home.
Lending regulations continuously change, so even if you have previously owned a home, you may not be aware of some of the new regulations.
The purchase price of the home is what we are able to negotiate between the buyer and the seller. In addition to the price you are paying for the home there will be additional cost involved.
Closing cost can be paid by either the buyer or seller depending on the type of loan. Typically, closing cost and prepaids run between 3 to 4% of the purchase price. If you are buying a $200,000 home, this could mean anywhere between $6,000 – $8,000 that you would need for closing.
There are many buyers that qualify for a loan but don’t have the money for the closing cost. The closing cost has to be paid at closing and cannot be rolled into the loan, so we see a lot of offers that ask the seller to pay all or most of the closing cost/prepaids for the buyer.
Let’s look at some of the cost:
I always recommend a home inspection performed by a licensed home inspector. The cost will run between $250 – $450 depending on the size of the home and is paid by the buyer at the time of the inspection.
A home warranty is a negotiated item in the contract and can either be paid for by the buyer or the seller. The warranty will cover various working systems in the home for the first year and usually runs between $400 – $500.
98% of our buyers obtain a loan from a lender. The lender will require a credit report, an appraisal, a flood search, a termite inspection and an underwriting or processing fee among other things. When purchasing property that is not in a platted subdivision, a survey may be required. The sale or deed and the mortgage (lien) will be recorded at the registers office and a conveyance tax is paid based on the sales price of the property and the loan amount. These are all called “closing cost”.
In addition to closing cost, you have prepaid and escrow items. These include one year of homeowners insurance which is paid in advance, and approximately 2-3 months of insurance premiums and property taxes that are put in escrow to pay these bills when they come due in the future.
These are primarily “buyers” cost. You need to remember that when making your offer, particularly if you are asking the seller to pay some or all of these.
Your closing will be handled by a closing company. A title search will be done to verify that there are no other liens on the property other than what is being paid off from the closing (sellers’ mortgage, etc). They will also make sure the taxes on the property are up to date and no back taxes are due and prepare the closing documents that the buyer and seller will sign to transfer ownership of the property. Their fees are in addition to your lender fees.
It’s easy to see why you need a Realtor to guide you through all of this. Please call me at Prudential Professionals Realty and I’ll be glad to help you thru the buying and selling process.
Tags: Buying a house in Clarksville TN, Buying a house in Ft. Campbell KY, Buying a house in Montgomery County, Buying a house., Closing costs, How much are closing Costs?, Selling a house., Who pays closing costs?
Avg. Sales Price: 183433
Avg. Days on Market: 81
Free Market Alerts 
An intriguing discussion is definitely worth comment.
I do think that you need to write more about this
topic, it may not be a taboo matter but generally people don’t talk about these subjects. To the next! Cheers!!
Thankfulness to my father who shared with me about this web site,
this webpage is truly amazing.
Hi! Do you use Twitter? I’d like to follow you if that would be ok. I’m undoubtedly enjoying your blog
and look forward to new updates.
Hello there! This is my first visit to your blog! We are a collection of volunteers and starting a new
initiative in a community in the same niche. Your blog provided us useful information to work on.
You have done a outstanding job!
Please let me know if you’re looking for a writer for your weblog. You have some really great posts and I think I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some content for your blog in exchange for a link
back to mine. Please send me an e-mail if interested. Thanks!
Hello to every one, the contents present at this site are
genuinely awesome for people knowledge, well, keep up
the good work fellows.
What’s up, yup this article is actually pleasant and I have learned lot of things from it regarding blogging. thanks.
I am not sure where you are getting your information, but great topic.
I needs to spend some time learning more or understanding more.
Thanks for excellent info I was looking for this information for my mission.
I loved as much as you’ll receive carried out right here. The sketch is attractive, your authored subject matter stylish. nonetheless, you command get got an edginess over that you wish be delivering the following. unwell unquestionably come more formerly again since exactly the same nearly very often inside case you shield this increase.
Also visit my blog: Authority Backlinks Avalanche
My brotheг suggeѕted I wоuld possibly like this wеb sitе.
Не useԁ to be tоtally rіght.
This submit tгuly made my daу. Yοu cann’t imagine just how so much time I had spent for this info! Thank you!
Check out my web site … Trisha
Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your website?
My blog is in the very same niche as yours and
my visitors would definitely benefit from a lot of the
information you present here. Please let me know if this alright with you.
Many thanks!
I know this website provides quality based content and additional material, is there any other web
page which presents these kinds of information in quality?
We stumbled over here from a different page and thought I might check things out.
I like what I see so now i’m following you. Look forward to exploring your web page for a second time.
I think the admin of this web page is genuinely working hard for his
website, for the reason that here every material is quality based stuff.
It’s genuinely very complicated in this active life to listen news on Television, thus I just use internet for that reason, and take the most recent information.
Hi there to every one, the contents existing at this site are genuinely remarkable for people knowledge, well, keep up the nice
work fellows.
I’m impressed, I must say. Rarely do I come across a blog that’s both equally educative and interesting, and let me tell
you, you’ve hit the nail on the head. The problem is something which too few men and women are speaking intelligently about. I am very happy I found this in my hunt for something regarding this.
Good info. Personally, I have sometimes found it tricky to find a friend in jail.
This link: inmate locator that sort of pointed me
in the right trajectory for my search.
You actually make it seem so easy with your presentation but I find this matter to be really something
that I think I would never understand. It seems too complicated and extremely broad for me.
I am looking forward for your next post, I’ll try to get the hang of it!