For most homebuyers, the means for paying for their home will come by mortgage. Along with the cost of your mortgage, other payments that should be factored in are your home insurance and property tax. Before the total of your monthly payment comes into play, these are a few costs you’ll need to save up for:
Inspections for a home can cost anywhere between $300 to $500, but can vary depending on the property and local rates.
The professional estimate of a home’s value, which is often required of the lending party, can run a homebuyer anywhere between $300 to $500.
In most situations, you will be required to put a down payment or upfront payment for your mortgage. This cost is generally 20% of the home’s value, though it is possible to put down less.
–Closing costs for buyers
Closing costs are third-party fees due at the close of a real estate transaction and usually total 2%–5% of the final sale price.
This by no means a definitive list of costs, especially as fees, percentages and loan options vary by state. This list is a helpful guide to get you started on your home buying journey. A discussion with your real estate agent or lending party can confirm the total costs you will be looking at based upon your financial situation and location.
Once you’ve discussed, calculated and saved for the cost of your home, the shopping process can begin. With the right action plan, home buying doesn’t have to be a stressful process at all. Welcome home!