Costs of purchasing a home.

If you are looking to buy a home, you probably have a budget. But what does your budget include? Is it just the price of the home? Is it just the down payment? If so, then you are forgetting about something…closing costs!

Closing costs refer to the extra expenses associated with buying a home, in addition to the sale price. Let’s take a look at what some of these costs are:

• Loan Origination Fee: This is charged if you are financing your home purchase to cover the costs of processing the loan.

• Appraisal Fee: Should an appraisal be necessary or requested, you will be charged a fee for this.

• Credit Report Fee: If you are financing then the lender will pull your credit and charge you for it.

• Title Fees: Could be paid by the buyer, the seller, or both.

• Inspections: General home inspections are recommended, but additional ones may be required by lenders and insurers.

• Notary Fee: A fee may be charged for notary services.

• Survey Fee: If a survey is conducted, this will be another added cost.

• Recording Fees: The county the property is located in will charge for recording the documents related to the sale.

It is important to understand exactly how much these fees will be and the total amount of funds you will need to bring to closing. The down payment plus your closing costs is what you will need to have available to close on your home. The cost of these items will vary.

If you are thinking about buying a home, contact us so we can assist in determining what your budget really is.