Often, I have read of real estate agents in other forums responding to this question from first time home buyers about the down payment amount with a response of “No Money Down.” Unfortunately, this response can be very misleading.
Even if the loan does not require any down payment such as for qualified US veterans or a very small down payment such as 3% for FHA loans, there are other fees and out of pocket expenses involved in buying homes. Some of these fees can be included in the loan and others must be paid via certified check or wire transfer at close of escrow. Now each state is different as real estate is local; however, here are a few though not all
- Escrow Fees
- Recording Fee
- Septic Transfer Fee
- Inspections Fees such as Home Inspection, Termite Inspection, Mold Inspection, Radon Inspection
- Well Inspection
- Solar Inspection
- Well Transfer Fee
- Survey
- Certified Foundational Tie Downs for Manufactured Homes
- Engineering Report for Tie Downs for Manufactured Homes
- Credit Report
- Appraisal Inspection Fee
- Prorated Taxes
- HOA Transfer fees
- HOA prepayment of monthly or annual fees
First time home buyers and those who may not have purchased a home in recent years or are thinking of relocation to another state, should ask their lenders what other out of pocket costs will be present. Authentic professional real estate agents may help answer some of these questions. However some lenders do have overlays, an additional criterion which lays over the basic loan requirements.
If you are considering buying a home with a loan, find a local lender in the area you are seeking. Then connect with a local professional real estate agent who knows the area and works within his or her area of competency. By taking these actions, you are more than likely not to be disappointed or surprised after you find your dream home and then learn you need all these extra dollars.
#GoldenValleyAzHomesAndLand #RealEstateAgent #Homeownership #FirstTimeHomeBuyer #NewHome #Relocation #WeDoThingsDifferently #LetsGetBackToRealConversations
Leanne M Smith, The Grit and Gratitude Agent Who Goes the Extra Mile Because Life Begins Where the Pavement Ends.
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