Attention home buyers !
The first step in the home buying process is to talk to a lender . Please find out the loan amout that you will qualify for and the costs involved in purchasing a home. The next step is to find a good real estate agent .
If you are looking to buy a home in Bucks or Montgomery counties Pa Call me : Gita Bantwal at Re/Max Centre Realtors 215-343-8200x124 or 215-275-8491 to be your buyer agent. I am an accredited buyer representative and hold ABR designation.
If you are looking for a mortgage in Connecticut call George Souto. Here is a great article ritten by George Souto that explains the costs in purchasing a home.
When First Time Buyers are preparing to purchase a home they usually only focused on the funds needed for the down payment, and are surprised to find out there are other funds required to purchase a property. These other Costs In Purchasing A House can some times cause especially First Time Buyers to become discouraged and postpone their home buying search. Therefore, it is important to discuss all funds required to purchase a property as early in the process as possible to avoid surprises later on.
The most common costs First Time Homebuyers do not think about are Closing Costs. Closing Costs not only come as a surprise to First Time Homebuyers, but the total amount of the Closing Costs can be a major shock. Yes, there are ways to cover Closing Costs without the Borrower(s) using their own funds, such as Seller Paid Closing Costs, and Down Payment & Closing Cost Assistant Programs (DAP), but the shock of hearing about these costs for the first time can really be sobering.
I am always prepared for this initial shock, and I know I have to take the time to fully explain these unexpected costs. When Closing Costs are explained correctly, and Borrowers understand them, and the initial shock normally goes away.
The bulk of Closing Costs are not Lender Fees. The bulk of the Closing Costs are third party fees which are mostly fixed fees, and generic to all mortgage loans. The exceptions would be funds required for escrows, points, title policy, and prepaid interest which fluctuate based on the price of the property. As a result the percentage of Closing Costs are higher on lower price properties than on higher price properties.
Below is a list of the Closing Costs most common to all mortgages.
- Application Fee/Processing Fee
- Appraisal Fee
- Attorney Fee
- Title Insurance Feed
- Flood Insurance Fee
- Recording Fees
- Daily Interest Charge
- Homeowners Insurance
- Credit Report
- Flood Certification
There could be other Closing Costs which are not part of every loan, and are more loan program specific such as:
- Funding Fees
- Condo Questionnaire Fee
- Re-inspection Fee
These costs can easily add up to several thousand dollars regardless of the loan size, because as I stated before most of these Closing Costs are fixed cost. When First Time Buyers hear about these unexpected Costs In Purchasing A House for the first time it is understandable why it can be really daunting for them. But as shocking as hearing about Closing Costs can be, finding out about costs they will incur before the Closing can be equally if not an even a bigger shock. I will cover these costs in a future blog "Up Front Costs In Purchasing A House".
Info about the author:
George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or email@example.com