Seven Percent?

What am I talking about?

Here it goes:

If you want to buy a home you will need a down payment. Right now that's typcially 3.5%.

Then there are closing costs... loan costs plus prepaids... these costs can include fees that allow you to take title to the property... insurance costs... home-owners fees... and various other costs that are associated to turning a property over from the seller to you the buyer.

These costs can be in the 3-4 % range.

In summary, on average- there is a 7% out-of-pocket cost to buying a home... unless:

• You ask the seller to pay for closing costs and/or prepaids. They are often willing to do so. That can reduce 3-4% of the cost to close.

• You find a home that is eligible for down payment assistance. There are loans available but they have their conditions. Call me... I'll let you know about them. Often they are new homes.
  

In some cases, buyers are able to own a home with very little down.

As a matter of fact, in some cases it's less expensive to buy than it is to lease... because with a lease you may need to pay first and last month's rent plus a security deposit. With certain homes your total out of pocket is close to $500.

If you'd like to know what it costs to own a home in Arizona, let me know. I'd be glad to discuss it with you.

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Chuck Willman is an Arizona based real estate agent: 480.292.0600

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Photo Credit: "3D Percentage Symbol" by Przemyslaw Szczepanski