Birmingham Real Estate Consumer Questions
Will I Need Money Prior To Closing?
Yes, you will! Your homebuying experience will be a lot more enjoyable if you know what to expect, so let's talk about those times when you are going to need money before closing day.
When you submit an offer to purchase a property you will need to include Earnest Money with that offer. The amount is negotiable between the buyer and the seller. These funds will be held in a special account until closing, when they will be credited to your closing costs.
When you have a Home Inspection you will pay your inspector at the time of the inspection. The amount usually depends on the size of the home and can vary. The property may have a septic tank and it is important to know that this is not included in the scope of a regular home inspection. In this case you will want to have a Septic Inspection, and you need to be prepared to pay at the time of inspection. Shop around and select inspectors that you have confidence in and have an understanding of their fees up front.
Your lender will require an appraisal of the subject property. Most likely they will ask for a credit card number and charge the cost when the appraisal is ordered. Discuss the cost of Appraisal Fee with them and make certain this is what you are actually charged. When I am representing a buyer I work closely with the lender. I want to make certain that the appraisal is not ordered until we are sure the inspections have not revealed conditions that may prevent you from wanting to go forward with the purchase.
Other expenses will be paid on the day of closing.....down payment, lender fees, and other items; as well as prepaid items to set up escrow accounts for taxes and insurance. Your Realtor® will make sure you know what funds you will need to bring to closing and check to make certain there are no mistakes in the settlement calculation.
* * * * * * *
Looking for a local expert for to help with your real estate needs?
Google one here!
Courtesy of Ann Allen, e-Pro, SRES, ASP
205.902.4868
Keller Williams
One Chase Corporation Drive, Suite 150
Hoover, AL 35244
© 2011 Ann Allen, All rights reserved
Comments (5)Subscribe to CommentsComment