Costs In Purchasing A House

Reblogger Gabe Sanders
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Many folks buying a home have no clue about some of the additional costs involved in the purchase.  This post by George Souto is information that should be given to all home buyers before they have committed to a home purchase.

Original content by George Souto NMLS #65149

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
  • Escrows:
    • Taxes
    • Homeowners

There could be other Closing Costs which are not part of every loan, and are more loan program specific such as:

  • Points
  • 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


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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

You covered pretty much all the unforeseen things. I would recommend this post to a lot of people! :)

Jul 23, 2016 04:20 PM #1
CA COASTAL ESTATES Lauren Selinsky Perez CRS
California Coastal Estates - Aliso Viejo, CA
"Your Real Estate Broker" #oclauren

I absolutely agree Gabe Sanders ! I think George created a great list for buyers. 

Lauren Selinsky 

Jul 23, 2016 04:34 PM #2
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Important information for all buyers to keep in mind, thanks for sharing this Gabe.

Jul 23, 2016 04:40 PM #3
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Gabe, I'm so glad you called our attention to this post.  This is one we should all share with first time buyers.

Jul 23, 2016 04:58 PM #4
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

This is a good post to reblog. I hope home buyers will read it. 

Jul 23, 2016 08:53 PM #5
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is an excellent selection for a reblog. Thanks for sharing.

Jul 23, 2016 09:41 PM #6
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Gabe, excellent re-blog and I agree as most folks ahve not even a hint of a clue about how much these costs will end up being. 

Jul 24, 2016 03:54 AM #7
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gabe thank you for re-blogging my blog and feeling that it was worth of being shared with your readers

Jul 24, 2016 07:12 AM #8
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC


The post does a great job in explaining the cost purchasing a home.

Good luck and success.

Lou Ludwig

Jul 24, 2016 10:35 AM #9
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

There are many costs that need to be paid for before closing...check with your lender

Jul 24, 2016 12:08 PM #10
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thank you for stopping by and taking the time to read my re-blog.

Sep 15, 2016 03:49 AM #11
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks. Your comments are always appreciated!

Sep 15, 2016 03:50 AM #12
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Stuart Florida Real Estate
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