Looking forward to buying a new home? Before making such a big purchase, know that while your typical 20% down payment may be one of the largest expenses, there are additional fees and hidden costs to prepare for.
1.Closing costs: Closing costs could range from 2% to 5% of your home’s price.
2.Origination fee: Fee ranges from 0.5% to 1.5% of your loan and covers underwriting and processing fees.
3.Moving costs: Whether you’re moving to a different state or the next town over, moving costs could add up quickly.
4.Initial repairs: Save money in advance for the unexpected repairs.
5.Homeowners insurance and private mortgage insurance: In order to get a mortgage, you’ll need to set up and pay for homeowner’s insurance to cover damage and destruction to your home and personal property. Private mortgage insurance is a cost you’ll incur if you don’t put 20% down.
Buying a home comes with all types of fees and added costs. Still, this shouldn’t deter you from becoming a homeowner if it’s what you truly want. The key is to make sure you understand and prepare for the total costs of buying a home before committing to a mortgage. I can guide you through the process. Call me Ben Keeney 203.313.0013