The 5 Most Common Fees Associated With Purchasing a Home

  The 5 Most Common Fees Associated With Purchasing a Home Aside from the list price, there are five other fees commonly associated with buying a home that you need to be aware of. Selling in the greater Houston area? Get a market analysis report Purchasing in the greater Houston area? Get full MLS access   When buying a home, here are the five most common fees, outside of the purchase price of the home itself, that you can expect to pay: 1. Down payment. Typically, down payment expenses make up anywhere from 3% to 5% of the overall purchase price. Some buyers choose to make a down payment of 20% or more, and there are benefits to putting that much down, but there are also several down payment assistance programs that allow you to buy a home with 0% down if you meet the loan requirements. The best way to find out how much money you’ll need to cover your down payment is by talking to your lender. 2. Closing costs. This is usually the second-largest out-of-pocket expense homebuyers make, and it’s often confused with the down payment. Most of the fees involved with your closing costs are associated with the preparation of your mortgage. These include attorney fees, title insurance fees, taxes, lender costs, and homeowners insurance. Some of these costs, such as the recording and transfer taxes charged by your state and local government, are non-negotiable. Others, though, you may be able to negotiate over with the seller. The amount you’ll pay overall depends on the size of your loan and what taxes you pay in your area, but they generally constitute 3% to 6% of the purchase price. The best way to find out how much money you’ll need to cover your down payment is by talking to your lender. 3. Earnest money. This isn’t necessarily a fee, but it is something you need to be aware of because you’ll need earnest money up front to move forward with the purchase of the home. Earnest money is basically your proof to the seller that you’re serious about buying their home. There needs to be earnest money involved to protect the seller’s interests while they take their house off the market and give you time to do your inspections. In the Houston area, the earnest money amount is usually 1% of the purchase price. This amount is then credited back to you at closing. 4. Appraisal fee. An appraisal is an educated guess as to how much the property is worth. No credible financial institution will lend you money to purchase a home without first getting an appraisal done on that home. Appraisals usually cost $500. 5. Home inspection fee. This is technically an optional fee, but we always recommend getting a home inspection when buying a home. An inspection will determine whether there are any problems with the home that need to be addressed before moving forward with the purchase. An inspector will look at the mechanical functions of the house to make sure everything is in working order. There are also specialized inspectors who perform a specific type of inspection, such as a termite inspection. If you have any more questions about home purchasing fees or you have any other real estate needs I can take care of, don’t hesitate to reach out to me. I’d be glad to help you.   Written by Ruby Miranda on December 11, 2018. Posted in Buyer Tips, First Time Home BuyersTags: Buy Your Home, Buyer Tips, Financing A Home, Ruby Miranda Trackback from your site. Leave a Reply  

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4 Apps to Save You Money

4 Apps to Save You Money         Looking to buy a home?   Free Home Value Report       It’s hard to believe that we’re in the middle of October already. Before we know it, the holidays will be here and the shopping season will be in full swing. Whether you’re gearing up for holiday shopping or just looking for some ways to cut down on spending, I wanted to share some apps that can help. Two will help you replenish your savings, and the other two help you save when you shop and eat.             Digit Digit is an app that makes it painless to save money. You link it to your bank account and it will analyze your spending and determine the perfect amount to automatically set aside each day. It aims to divert an amount small enough that you won’t even notice it, but over time, the savings can add up drastically. Acorns This nifty app allows you to roll your spare change into an investment account that has the potential to grow much faster than a savings account. You can link it to your debit card, and when you spend less than a whole dollar amount, it will round up and automatically reinvest the remainder into your account (for example, if you spend $4.75, it would invest 25 cents). You can also add money on a one-off basis. RetailMeNot This trusty shopping app offers promo codes and discounts to save you money at some of the most popular stores and eateries around the country. It offers both in-store coupons and online promo codes. There’s an option to turn on location services, which allows you to view deals at shops, malls, and restaurants near you. Poshmark Never pay full price on clothes or shoes again with this app. You’ll save big bucks by buying pre-owned (sometimes brand new) items from other users. On top of that, you can sell your own gently used clothes, shoes, and accessories like jewelry and sunglasses to make some extra bucks.       These are just a few ways to save money this holiday season. If a new home is on your shopping list, I’d be happy to help you. Please give me a call at your convenience. Have a great day! Have questions: Contact Us Here   Written by Ruby Miranda on October 18, 2018. Posted in Buyer Tips, MiscellaneousTags: Miscellaneous, Mobile Apps Trackback from your site. Leave a Reply

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What Do Homebuyers Need to Know Before They Get Started?

  What Do Homebuyers Need to Know Before They Get Started? Many prospective homebuyers don’t know anything about what the process looks like. Here are the answers to a few common questions that we always hear from them. Selling in the greater Houston area? Get a market analysis report Purchasing in the greater Houston area? Get full MLS access Buying real estate is exciting and terrifying at the same time. There are many steps in the home buying process and each one creates a new set of questions. Knowing the answer to the 10 most common home buying questions can help alleviate some of the stress that comes with buying a home. Today we’re focusing on three of the most important questions: 1. What is the first step of the home buying process? A mortgage pre-approval. Unless you’re paying cash for a house, you’ll need to get a mortgage. In order to know what kind of home you can afford and what type of mortgage you can qualify for, you’ll need to get pre-approved for a loan.   The closing process takes 30 to 45 days to complete.   2. How long does it take to close on a home? Typically, it takes 30 to 45 days. The timeline for finding a house varies from person to person, but once an offer is accepted on a home, it usually takes about 30 days to close. 3. What does a Realtor do? Almost everything. We’re basically the glue of the transaction. A Realtor is your most valuable asset when buying a home because they will walk you through every part of the home buying process, educating you and representing you from start to close and beyond. Buying a home may seem intimidating, but a good Realtor will make the entire process much easier. If you have any questions for me or would like some help getting started with the home buying process, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.   Written by Ruby Miranda on October 11, 2018. Posted in Buyer TipsTags: Buyer Tips Trackback from your site. Leave a Reply

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