For all of you new buyers out there, don't forget one very important detail you don't hear much about when budgeting for your new purchase. In addition to the amount of money you will be putting down toward your new home purchase, you will also need to set aside some dough for closing costs.
Closing costs are basically service fees (mortgage costs, escrow charges), taxes and various other legal charges that buyers and sellers both pay to complete the transaction. It's not an exact science, but buyers can expect to pay anywhere from 1-2% of the purchase price toward closing costs.
So if you purchase a home for $700,000, you are likely to pay approximately $7,000 or higher, depending on the fees charged by your lender. There are additional fees like pre-paid property taxes and homeowner's insurance that you might also have to pay, depending on your loan and lender requirements.
The good news is that buyers traditionally DO NOT pay their Realtor's commission. That is paid by the seller through their agent. One very good reason to not embark on this journey alone! It is even possible to have the seller pay your closing costs. Ask me how.
Speak to a Realtor like me when you're getting ready to start home shopping. Call anytime 323-528-9989.
