Q about real estate transactions in SC (York: HOA fees, home owners insurance)

[hotkarl]

I'm curious about the home buying process. Up here in NY it is a nightmare, even with the most straight foward and uncomplicated deals.
(On average, it takes approx 3 months from contracts to close.)

What expenses involved are due by the buyer(ha,that would be me)?
(costs aside from the norm, such as a home inspection, mortgage costs etc...) Exactly what am I responsible for digging into my wallet for?

How long does the process take from the time you sign the purchase contract to the actual closing?

Thanks guys!

[OleTomCat]

Costs are negotiable, but the Realtors can answer that better than I, I have seen closings in less than a month.

[DJShymansky]

Closings can happen as quickly as the Buyer, Lender, Seller and closing attorney can get everything squared away. I've done it in less than 7days with a ready, willing and able group. The norm is 30 days or less from contract to close, barring delays for repairs and the like.

Typical Buyer expenses...

Earnest Money Deposit: Depends on the purchase price, usually no more than 1%, sometimes no larger than $1000. Every contract is different, every seller is different.

Home Inspection $250-$400 is the norm at the moment, depending on size of the home, age of the home and inspector costs. Could go up if it's an older home and you're adding things like lead-based paint inspections, i.e. prior to 1978, radon inspections, etc.

The Seller typically takes care of the CL-100 (termite and moisture inspection), but if it's an As Is sale, you'll want to do this yourself. Varies , $75 to $150.

Your down payment. 3.5% for FHA, 10-20% for Conventional.

Just about everything else is wrapped into your closing costs at the table, attorney's fees, escrows for insurance and taxes, origination points for your lender, etc. Typically 3-4% of the purchase price would cover all of the closing costs on your side, including the prepaids for your lender, escrows, etc. If you can get the Seller to agree to pay this for you, that's money that you won't have to come out of pocket for.

It's a bit generic, every purchase is different, but I hope it helps.

[USCJoe]

The length of time from ratification of contract to closing will depend upon how soon the seller can/wants to be out of their home, how soon you can get the inspection,appraisal and repairs done and how long it takes for your lender to process the loan. Assuming that the home is vacant or the owner can vacate quickly, a home can realistically close in about 2-3 weeks and sooner if the purchase is for cash. The costs to the buyer are generally restricted to those imposed by your lender such as the loan origination fee, appraisal, prorated taxes, a one year paid up home owners insurance policy and some minimal misc. fees.Occasionally, a community may have a transfer fee payable by the buyer which may be about 1/4%-1/2% of the contract price of the home which generally goes into the community capital improvement/contingency fund/account. Having worked with New York buyers before, I suspect that you will find the home buying process much easier and quicker than in NY.

[hotkarl]

Ok, doesn't seem like any surprises here, basically the same stuff as in NY.

What's the story with the HOA fees? What do they pay for? I see they vary from development to development but I guess that has to do with the ammenities, like whether or not there is a pool, fitness rooms etc...
But in general what are these fees for? And how are they paid? do they send you a bill every month or something like that?

Thanks again, all of you guys have been great!

[DJShymansky]

The HOA docs will delineate what the fees cover, when they're paid, etc. It does differ greatly from neighborhood to neighborhood. There could also be HOA transfer fees upon purchase due at closing for some neighborhoods, i.e. a capital contribution fee. Most HOA fees cover the neighborhood amenities, others just cover maintenance of the commons areas, and might charge an additional member fee for the amenities, i.e. pool pass, clubhouse fees, etc.