As a first time homebuyer you might have many questions. I am here to answer all of them. I pride myself in being able to help you and your family get into the home of your dreams! I strive to find you the ideal home and to guide you through the process in your purchase.
Here are some key Tips!
Take a look at my First Time Homebuyers Guide to find out about Costs, Inspections, and Closing!
Learning the Steps to a Successful Home Purchase
1) Consult with your Realtor
2) Lender Approval
3) Home Showings
4) Submit and Negotiate your offer
5) Submit Monies to the Title Company
6) Call and send out Inspector
7) Negotiate Repairs
8) Schedule Appraisal
9) Sign a turn in Closing Disclosures
10) Do final walkthrough
11) Closing Day
Associated Transaction Costs
As you may know, there are several costs that are associated with the purchase of your new home. You might be wondering.. What are they? I have gone ahead and broken down the costs into 2 sections. Upfront Costs and Closing Costs.
Upfront Costs are those needed during the first two weeks of the Acceptance of your offer. Earnest money, Option money, Inspections, and Appraisals make up these upfront costs.
Due upon acceptance are both Earnest and Option money. The earnest money can be anywhere from 1% - 2% on a standard offer. This will dictate how much of a serious buyer you are. The earnest money is basically the security deposit and can be lost if the buyer does not abide by the terms of the contract. The option money is a per diem fee that is meant to give the buyer the chance to back out of the offer with no consequences. This fee is determined by the number of days the buyer is requesting for inspections. During the option period the buyer is not to required to, but definitely recommended to conduct an inspections. All inspections are paid by the buyer and can be from $275 - $550. The appraisal comes after the option fee has ended and al inspections have been conducted. This fee can be due either when it is initially done or at the end as part of your closing costs.
Closing costs are those due at the closing table. These fees include lender fees, interest fees, title fees, prorated taxes and home insurance, and your downpayment. Your downpayment should be discussed with your mortgage lender. Depending on what program you may be using to get your mortgage, you may need to bring anywhere from 0-10% of the sales price. Average downpayment will be 3.5% for an FHA loan. The rest of the fees are all combined by the title company and the lender. These fees can greatly vary as you may qualify for lender credits, seller concessions and other pertaining factors.