Buying your first home can be extremely exciting, but the buying process can be a new frontier for some. Understanding and being prepared for the costs of a purchasing a home can help improve your experience and not be a big shock to your wallet. Special conditions may also arise when purchasing Outer Banks real estate and other tourist destinations. Learn more about these buying costs and be on top of your real estate purchase process!
- Earnest Money: This down payment proves that you are truly committed to purchasing the property in question. This payment averages around 1-2 percent of the total purchase price, but can be more or less depending on market trends. These earnest amounts may be more when purchasing in specific areas. For example, Corolla real estate is a high-demand area and may garner a higher earnest price.
- Origination Fees: This is the cost you pay to the loan officer or broker for processing the entirety of your loan. These fees are usually minimal averaging around 1% of your total purchase cost. This is a question you should ask when shopping for real estate companies and mortgage lenders.
- Appraisal: Nearly all lenders require the potential homeowner to attain an appraisal of the fair market value of the home. Lenders will not give money freely for a home that is below fair market value. This ensures that your home is a sound investment for their company and will make the borrowing process easier. Appraisals run between $200-$400 dollars on average.
- Home Inspection: If the seller does not provide a home inspection, it will be extremely beneficial for the buyer to purchase a home inspection. Having an inspection brings to light any issues your home may have and will list all repairs that need to be completed. Inspections usually cover the entirety of the home, including structural issues, flooding probability, codes not followed and more.
- Insurance Fees: Although this is technically not a requirement during your actual purchase process, buyers should be aware of upcoming insurance costs post-purchase. These fees will be a yearly item for homeowners and depending on the area you live in, can be costly. If you live in an area considering hazard prone, your insurance fees may be higher and extra insurance policies like flood insurance may be required.
Being prepared for upcoming fees and payments when purchasing a new home is a great way to be proactive in your buying process and will make the entire experience quicker and easier on you and your family. Ready to start looking for a home today? Contact our team at Eillu at email@example.com and find your dream home!