Costs for Buying a Home
Buying a home-what about the closing costs? Closing costs are based on the purchase amount agreed by the buyer and seller and are the responsibility of the buyer. The closing costs are what a buyer is going to pay in order to obtain a loan in addition to any down payment they may need to purchase their new home or property.
What do closing costs cover? Closing costs cover several line items including lender fees, title fees, and third-party fees. Closing costs do not include Realtor fees, these fees are paid by the seller.
How are down-payments and closing costs calculated? Fees and down-payments are based on the type of loan a buyer is trying to obtain. Often first-time buyers fall under a FHA loan where a seller can pay up to 6% of the purchase price. There are several other loan options including VA, conventional, and USDA/Rural loans. Every loan has specified guidelines, fees, and who can quality for these loans. It is also important to mention when looking for a home to purchase ask about certain loans that do qualify for no down-payment terms. Closing costs are an absolute when financing a home it is just a matter of who is going to pay for them. Most often sellers will help with closing fees; however, the seller cannot help with the down-payment. Remember the down-payment is entirely the buyer’s responsibly. Buying a home can be overwhelming; however, when you have the right Lender and Realtor to help you navigate it can be a smooth and rewarding process!!!
Tags: Real Estate, Finance