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Costs involved in buying a home

Reblogger
Real Estate Broker/Owner with Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL 481.010183

Dr. Stacey-Ann Baugh from Upper Marlboro, Maryland, who enjoys educating her clients, has written this post to prepare first-time home buyers on what to expect.

Thank you Dr. Baugh, I believe this will be most helpful to first-timers from all over the globe!

If you or someone you know is seeking to purchase a home in the South Suburban Illinois  or Northwest Indiana area, we at Rice Property Management & Realty would be pleased to service you, and can be reached at 708-862-RICE (7423).

Via Dr. Stacey-Ann Baugh (Long & Foster Real Estate, Inc):

I work with mostly first-time homebuyers who are not familiar with the process of buying a home and who may be confused about how much money they may need to be able to buy.

DOWN PAYMENT - The minimum down-payment is usually 3.5% of the purchase price.  However, this can range from as little as 0% to as much as 20% of the price depending on the type of loan.  There are some programs available that assist with down-payment.  The Down Payment on your DREAM program in PG County is an example of a down-payment assistance program for first-time home buyers purchasing a vacant foreclosure in the County.

CLOSING COSTS - Closing costs are the costs associated with purchasing the home, acquiring the mortgage, purchasing title insurance, as well as any state or city taxes involved.  These costs vary by location and depending on your mortgage arrangements but usually run between 3% and 6% of the purchase price.  Sometimes arrangements can be made to have the seller assist the buyer with some or all of the closing costs.

EARNEST MONEY DEPOSIT - This deposit is submitted with the offer.  The deposit is held in escrow and credited towards the buyer's down payment and/or closing costs.  However, this check is cashed following acceptance of the offer.  The seller may be entitled to the deposit if the buyer defaults on the contract.  This deposit is usually a minimum of 1% of the purchase price and the amount may need to be increased in competitive situations.

HOME INSPECTION - This is paid for by the buyer at the time of inspection.  The costs involved vary depending on the size and purchase price of the home but cost approximately $250-$500.

TERMITE INSPECTION - Many mortgages require a termite inspection.  This can either be billed to the closing company and paid at the settlement table or paid for up front.  The costs range from $35-$55.

OTHER INSPECTIONS - Any additional inspections that the buyer is interested in having done are paid for by the buyer.  These may include radon inspections which can cost between $125 and $200, mold inspections, well water tests, septic system evaluations, chimney inspections, and anything else the buyer is interested in investigating prior to committing to purchase the home.

APPRAISAL - A few lenders will have the appraisal paid for at closing.  However, many lenders will have the buyers pay for this up-front.  That way if something goes wrong with the contract the lender is not stuck with the cost of the appraisal.  This can vary in cost from approximately $350-$550.

If you are interested in learning more about purchasing a home  or for more information about the down-payment assistance programs available in Prince George's County, MD don't hesitate to contact me.

Dr. Stacey-Ann Baugh

Long & Foster Real Estate

www.staceybaugh.com

staceyannbaugh@gmail.com

240-481-3565 (C)

301-924-1100 (O)

 

I Make House-Calls!

"Where the RIGHT Price is the RICE Price!"

Original content by Dr. Stacey-Ann Baugh

I work with mostly first-time homebuyers who are not familiar with the process of buying a home and who may be confused about how much money they may need to be able to buy.

DOWN PAYMENT - The minimum down-payment is usually 3.5% of the purchase price.  However, this can range from as little as 0% to as much as 20% of the price depending on the type of loan.  There are some programs available that assist with down-payment.  The Down Payment on your DREAM program in PG County is an example of a down-payment assistance program for first-time home buyers purchasing a vacant foreclosure in the County.

CLOSING COSTS - Closing costs are the costs associated with purchasing the home, acquiring the mortgage, purchasing title insurance, as well as any state or city taxes involved.  These costs vary by location and depending on your mortgage arrangements but usually run between 3% and 6% of the purchase price.  Sometimes arrangements can be made to have the seller assist the buyer with some or all of the closing costs.

EARNEST MONEY DEPOSIT - This deposit is submitted with the offer.  The deposit is held in escrow and credited towards the buyer's down payment and/or closing costs.  However, this check is cashed following acceptance of the offer.  The seller may be entitled to the deposit if the buyer defaults on the contract.  This deposit is usually a minimum of 1% of the purchase price and the amount may need to be increased in competitive situations.

HOME INSPECTION - This is paid for by the buyer at the time of inspection.  The costs involved vary depending on the size and purchase price of the home but cost approximately $250-$500.

TERMITE INSPECTION - Many mortgages require a termite inspection.  This can either be billed to the closing company and paid at the settlement table or paid for up front.  The costs range from $35-$55.

OTHER INSPECTIONS - Any additional inspections that the buyer is interested in having done are paid for by the buyer.  These may include radon inspections which can cost between $125 and $200, mold inspections, well water tests, septic system evaluations, chimney inspections, and anything else the buyer is interested in investigating prior to committing to purchase the home.

APPRAISAL - A few lenders will have the appraisal paid for at closing.  However, many lenders will have the buyers pay for this up-front.  That way if something goes wrong with the contract the lender is not stuck with the cost of the appraisal.  This can vary in cost from approximately $350-$550.

 

If you are interested in learning more about purchasing a home  or for more information about the down-payment assistance programs available in Prince George's County, MD don't hesitate to contact me.

Dr. Stacey-Ann Baugh

Long & Foster Real Estate

www.staceybaugh.com

staceyannbaugh@gmail.com

240-481-3565 (C)

301-924-1100 (O)

 

FINALLY!  A DOCTOR WHO MAKES HOUSE-CALLS!

Comments (5)

Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC

My FIRST attempt at re-blogging and it comes out DOUBLE!

Oct 25, 2009 02:19 AM
Dr. Stacey-Ann Baugh
Century 21 New Millennium - Upper Marlboro, MD
A doctor who makes house calls.

I wonder why that happened.

Oct 25, 2009 06:00 AM
Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC

It may have happened when i hit the FIRST re-blog link, then the second one as it was being prepared.  Perhaps, i will delete this and start afresh.

Oct 25, 2009 09:06 AM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Diane,

This is what happened to me on a re-blog that I did of yours!

Remember?

Oct 25, 2009 12:25 PM
Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC

YES I remember Judi!!  I have to practice to get the hang of this..

Oct 25, 2009 12:33 PM