Home-Buying Costs Know About Some Tips Said Jeff Adams

If you are a first-time home buyer, you might get a little nauseous when the last line of your good-faith estimate comes in at several on $1000. And after the color returns to your face, you might also be a little more than puzzled by some of those fees.

Origination

The origination fee is a heavy one. It’s the price you pay the loan officer for completing the loan and it include underwriting, and processing costs.

The start fee is a small percentage of the total loan. A typical origination fee is about 1%, but it can vary. Use your good-faith estimate to shop around.

Earnest money

To prove you are “earnest” in your pay for commitment, expect to plunk down 1% to 2% of the full purchase cost as an earnest money deposit. This amount can change depending on market factors. If demand in your area is high, a seller could expect a better deposit. If the market is cold, a seller could be happy with less than 1%. Other leading factors like state limitations and rules can cap how much earnest money a seller can ask for.

Land and other Inspection

You want to be certain your new home is structurally sound and free of surprises such as leaks living in the walls. Those assurances come with a price.

:-)House inspection: This is critical for home buyers. A good checker will be able to notify you of structural problems, flood issues, and other serious problems. Expect to pay $300 to $500 for a home inspection, although cost varies by location.

:-)Radon inspection: An EPA-recommended step, this inspection will determine whether your future home has elevated levels of the cancer-causing agent radon. A professional radon inspection can cost several $100.

Escrow account

The escrow account is mostly a way for your mortgage company to make sure you have enough money to cover connected taxes and mortgage insurance. The amount you need to pay varies by location, and loan type.

Escrow accounts are general for loans with less than a 25% down payment and compulsory for FHA loans, but it’s not required for VA loans.

Attorney

Some states, such as Georgia, require an attorney to be present at closing. In some other areas, this is optional. If you use a lawyer, expect to cover the costs, which vary by area and lawyer.

It’s typical for mortgage companies to have a lawyer on their end, although they should cover the bill.

Appraisal

Your lender won’t loan you money for a home without knowing what its fair market value is. An evaluation will cost $200 to $400, depending on location and property range.

Credit check

Just because you can get your credit report for free does not mean your lender can you have to pay back the lender, usually around $30.

Extra insurance

If you live in a hazard-prone area, you might need to purchase extra insurance, like for flood.

Title Company

You pay this to the title company to make sure the property’s title is free and clear. Your lender will recommend a title company, but you can also shop around for one.

Survey

It’s not required in all instances, but your landowners may require a professional surveyor to determine accurately where your land lines are drawn. Prices vary widely, but expect to pay at least $100.

:-)Remember: You have bargain power. Shop around to get a feel for what rates and fees apply in your area. If you are not sure what a lender is charging, ask for a clarification the charge might not be set in stone. If you are unhappy with a charge, discuss.

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