Good question!
Your lender will have answers. Meet with a qualified mortgage specialist who will help you determine your price range, down payment and mortgage plan. This first step is free! So get going...
Here are a few points to discuss with your real estate agent
Buying a home should be something to smile about-we work to make that happen!
Escrow deposit-this is the earnest money deposit which is paid when you get a house under contract. This money shows your honest interest in a property. Generally the higher the escrow, the better your offer will look to the seller. In Virginia, you can get by with 1% of the home price. In Maryland and DC, it can range from 1 to 5%, depending on the circumstances. This money is held in escrow and brought to settlement as part of your settlement funds. Escrow funds are held in a separate FDIC insured escrow account. At closing, they become part of the money you bring to the settlement table.
Home Inspection-paid to the inspector you hire at the time of the home inspection. The cost varies, $440 – $600 depending on the home & lot size. Paid to Inspector
Radon Test-$140 paid at the time of inspection -Paid to Inspector
Termite Inspection-$45-$75 paid at the time of inspection or at settlement -Paid to Inspector
Appraisal-$400-$500 this is shown on the HUD-1 and will be paid at or prior to closing Paid to the Lender
Credit Report-$50 this is charged when you apply for your home loan – Generally paid at closing
Survey-$800-$1100 this amount depends on the size of lot so it can vary. It is ordered by the settlement attorney after the Contract is signed by the Seller. It is paid to the surveyor at closing (included on the HUD-1)
Down Payment- this is determined by the loan program, cost of home & what you decide to put down. Some programs are $0 down others are not-this is a conversation to have with your mortgage lender
Settlement Attorney’s Fees, Transfer Taxes, Insurance and other closing costs- will be on your HUD-1. These fees vary depending on county and state. They will be included on the itemized form (HUD-1) These funds should be wired to the settlement attorney or delivered in Certified Funds payable to the Settlement attorney
Remember
Do not make any large purchases or open new lines of credit between the time you are pre-approved from the lender to the time of settlement. It could disqualify you for your loan.
One week prior to settlement, coordinate with lender to get your final funds in order. The lender may do another credit check to ensure your finances are still in order. It is essential to have excellent communication with your lender.
Bring your driver’s license or passport to settlement. Your name needs to appear the same on the contract as it is on your identification. Bring a check book, just in case.
Always ask your Exclusive Buyer Agent any questions about this process. We are always available and work to make your home purchase as smooth as possible!
Victoria Henderson is an Associate Broker with Buyer's Edge licensed Realtor in Virginia, Maryland and Washington DC
Marshall Henderson is an experienced Realtor and Exclusive Buyer Agent with Buyer's Edge, licensed in Virginia, Maryland and Washington DC
Members of the National Association of Realtors
Members of the National Association of Exclusive Buyer Agents
Buyer's Edge
4849 Rugby Avenue Bethesda Maryland 20814 office 301.657.1475 cell 301.922 1677
Comments(2)