Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Typically speaking, if you are buying a house through a realtor.....what expenses should I be prepared for. And is there anyway to estimate these costs ahead of time, to know how much money you should save or have prepared before seriously looking at houses.....
Typically speaking, if you are buying a house through a realtor.....what expenses should I be prepared for. And is there anyway to estimate these costs ahead of time, to know how much money you should save or have prepared before seriously looking at houses.....
Thanks.
You shouldn't start looking until you have spoken with a lender. They will issue you an estimate of what your closing costs and down payment requirements will be.
You shouldn't start looking until you have spoken with a lender. They will issue you an estimate of what your closing costs and down payment requirements will be.
Let me add to find a good local broker or lender who you can sit down and discuss your options. They can give you a good faith estimate that should show your costs accurately, your payments and how much you can afford.
Don't fall for unbelievable promises or any internet lender unless it's someone like Wells Fargo.
There is no cost the buyer for using a real estate agent. The seller's listing agent splits the commission with the buyer's agent.
If you want to the best rate and terms on a loan you should have CASH of at least 20% of the price of the home. With some loan programs you can get away with a downpayment as low as 3.5%, you'd still a bit more cash for inspections and loan app costs.
Any competent lender will be able to detail EXACTLY what you will need to bring to the table well before you go shopping. Many credit union have "home buyer education programs" that will go throigh a work book of costs.
Please take advantage of this and interview several lenders.
if you ask the sellers to pay your closing costs, then besides the down payment, the only purchase expenses may be appraisal fee and home inspection cost. If the home inspection finds problems, then you can always negotiate with the seller to pay for those fixes also. seller will normally agree to paying for a home warranty also. but there may also be remodeling issues that you may want to budget for.
To add onto what everyone else said, banks like to see that amount of money in your bank for at least 30 days, preferably 90 days. That way they can make sure that $X is not just some fluke dollar amount that just got into your account right before closing.
So bottom line, have money in your bank, make sure it's been in there for a while, and just in case, if you have any big amount either credited or taken out of your account, make a note/copy of those as well (i.e. your income tax return, if you get it by mail and deposit the actual check into your bank account, you might want to make photo copies of the check)
To add onto what everyone else said, banks like to see that amount of money in your bank for at least 30 days, preferably 90 days. That way they can make sure that $X is not just some fluke dollar amount that just got into your account right before closing.
So bottom line, have money in your bank, make sure it's been in there for a while, and just in case, if you have any big amount either credited or taken out of your account, make a note/copy of those as well (i.e. your income tax return, if you get it by mail and deposit the actual check into your bank account, you might want to make photo copies of the check)
Good Luck!
Oh, excellent point! If I'd known this sooner, I could've closed much much faster on my house. They picked apart where any and every deposit came from and we happened to get into contract on a house after a "weird" money month and it was a lot of work to straighten it out.
I agree, talk to a lender/loan broker and they can explain the process to you and give you a number as to what closing costs will be. Closing costs + down payment is what you bring to closing, and inspection and appraisal fees are paid a bit before then. Then have money ready for different utility amounts than your old residence, and money to re-do/change some things, etc. But it helps that in most cases after you pay that big lump at closing, your first mortgage payment isn't due for at least a month, so if you need to buy some paint it isn't as painful
if the house you are looking at has been vacant for awhile without power, city permits are normally necessary, before you can evern turn the power on. those fees will nickel and dime you.
Ok. So, I had no idea about all the things everyone mentioned. It seems weird to me to look into a lender and get the money sitting in the bank (and already start paying the interest on it) when I don't even know if I will find a house I like enough to buy right now. What if I don't find a good house I like or what if I change my mind and decide not to move after finding nothing. Also, city permits??? Just to turn on your power in your new house? Because I only want to look at vacant houses. I don't like looking at houses with people's stuff everywhere and I don't want to worry about the state of the house after they finally leave. This is getting really hard. So, I pay for the inspector to look at the house I'm interested in? Or do the owners already have that done and some form filled out?
You really need a good experienced agent to work with who can guide you through all your concerns and questions. It costs you nothing to work with a Buyers Agent and you should take advantage.
If you look at only vacant homes you will miss many very good homes. Usually vacant homes are vacant for a reason and the occupied homes have usually had someone take care of them better.
You will get your own inspector once you go under contract. Do not rely on a seller for this. You should have a Sellers Disclosure provided by the owner of the home unless it's a foreclosure.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
