Let’s Talk Buying Process…
Buying a home can be extremely intimidating. Like first day of freshman year intimidating. That’s the best part about my job though; I get to help you make this process a piece of cake! When my husband and I bought our home we were in the “First Time Homebuyer” seat and it was a whirlwind. That’s exactly what I’m aiming to make easier for you.
So lets start with the basics. Here is a listing of common closing costs for homebuyers. That is, what you have to pay for when buying a home!
- Down Payment – The money you have saved to purchase your home
- Loan Origination – The fee for creating and approving your mortgage
- Points – Also called loan discount fees, which you pay to receive a lower interest rate
- Home Inspection – To have a certified inspector go through your soon-to-be home!
- Appraisal – Having a certified appraiser price your home, typically for mortgages
- Credit Report – The mortgage company will run this to determine all of your mortgage specifics
- Private Mortgage Insurance Premium – To protect the lender in case of loan default
- Insurance Escrow – If the insurance is being paid as part of the mortgage
- Property Tax Escrow – The lender holds the money for taxes in escrow and then pays them for you
- Deed Recording – A fee to record the deed in the county courthouse
- Title Insurance Policy Premiums – To protect the title of the home
- Proration – Your portions of costs, like property taxes, that are split between you and the seller depending on the date of settlement.
So this is a generalized list, there could be more should you choose additional inspections or something of the sort or there could be less. Notice one thing about this list though… COMMISSION is not listed here!
One thing that many buyers don’t understand, and neither did I, is that the seller almost always pays for commissions. Your agent gets paid by the seller, NOT YOU!
I hope this helps give you a little better understanding of what it means to be a buyer. We will continue to build on this foundation until you are an expert too! If you have any questions at all, please feel free to e-mail, text or call us.
Ready to start your search?