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Closing Costs: Understanding What It Costs to Close on a Home and What You Can Expect to Pay

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Closing Costs: Understanding What It Costs to Close on a Home and What You Can Expect to PayIf you’re in the process of buying a new home, you’ve likely heard the term “closing costs” in regards to the many different fees and taxes that you’ll be required to pay during the purchase process.

In this post we’ll look at a number of these closing costs and what you will be expected to pay when you buy that next dream home.

Taking out a Mortgage? There Will Be Fees Attached

If you’re taking out a mortgage to finance the cost of buying your home you’ll end up incurring a variety of fees. Nearly all lenders will charge a mortgage application fee, which covers the cost of processing your application and all of the necessary paperwork.

You’ll likely have to pay for a professional appraisal of the home as well, as the lender will want to ensure that they aren’t lending you more than the house and property are actually worth.

Inspection And Insurance Costs Will Add Up

If you’re buying a pre-owned home you’ll need to pay for a home inspection to gain an understanding of the home’s condition and if you’ll need to make any repairs in the near future. You’ll also need to purchase homeowner’s insurance on the property to protect yourself in the event that something does go wrong with the home.

If you put less than 20 percent down on the cost of the home, your mortgage lender may also require that you purchase private mortgage insurance; this will vary depending on which state or province you are buying in.

Don’t Forget About Escrow Fees and Taxes

As with any major financial transaction you’ll need to satisfy the tax man by paying various taxes on your purchase. These will vary depending on where you are buying your home, but might include sales taxes, property taxes, transfer taxes, recording fees, title transfer fees and more.

If you used a third-party escrow service to manage these fees or to hold your deposit during the closing process you’ll also need to pay escrow fees prior to signing the final paperwork.

Five Small Signs That Can Indicate Much Bigger Problems with a Home

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House Hunting: Watch for These Five Small Signs That Can Indicate Much Bigger Problems with a HomeIt’s not uncommon for home buyers to recount horror stories about properties that appeared to be fine at first glance, but were actually hiding very expensive problems. If you fail to do your due diligence, you might find your dream house turning into a nightmare. The next time you walk through a house, pay attention for these five signs that the property might be hiding a unfortunate secret or two.

Mold, Water Spots and Water Damage

Older and newer homes alike may develop a leaky pipe or another similar plumbing issue from time to time, but any type of water issue can result in mold growth inside the walls. Water spots and warped wood indicate that the property has had a water issue in the past, and this means that the property should be more thoroughly inspected for mold growth before you make a purchase.

Doors and Windows That Stick

One of the most common signs of a foundation issue is doors and windows that stick or that are difficult to open and close. As you walk through the home, open and close the doors at leisure to identify if they are not in the frame properly. The issue should be reviewed by a structural home inspector or foundation contractor.

Small Cracks in the Walls

Some cracks in both interior and exterior walls can indicate that the home’s foundation has shifted and is no longer flat and level. Significant issues may be indicated by molding or door frames that appear to have shifted after installation.

Fresh Paint on a Small Area of the Wall

Many property sellers will apply fresh paint to walls before listing a home for sale, and this is not necessarily a sign of damage to the home. However, when fresh paint is applied on one area of the wall alone, this may be a sign that the homeowner is attempting to conceal water damage or other related issues with the property. Further inspection of the property is in order.

Floors That Slant

Any time a floor slants to a level that you feel as though you are walking up or down across the home, this is a significant indicator that the foundation has shifted. Foundation issues result in the movement of the foundation that the entire home rests on, and this can result in an uneven feeling when you walk across the floor. If you notice that the floors in a property slant, you should schedule an inspection of the foundation.

Considering a Vacation Home? Six Tips for Buying a House or Condo for Relaxation and Vacation Use

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Considering a Vacation Home? Six Tips for Buying a House or Condo for Relaxation and Vacation UseIf you’ve just returned from the vacation of a lifetime, you probably wish that wonderful time never had to end. When you buy a vacation home or condo, you can guarantee that you have an escape that will provide you with years of enjoyment. Before you take the plunge, though, take advantage of these six helpful tips about buying a vacation home.

Choose Someplace Versatile

When buying a vacation home, it’s all about getting the most out of your investment. Consider choosing a place that you can enjoy throughout the year. Your ideal vacation home will be a haven in the summer, a beauty in the fall, a refresher during the spring, and the perfect place to celebrate the winter holidays.

Think About Convenience

When you choose your vacation home, you will want to find a relaxing getaway that fits your lifestyle. If you love to have easy access to the grocery store and other amenities, don’t buy in a remote location. If instead you’d prefer something secluded, opt for a home that is hidden far from civilization.

Consider Your Neighbors

Depending on where you choose to buy a vacation home, you’re likely to be surrounded by others who love the area as much as you do. You need to decide if you want to have many others who are in close proximity or if you prefer having your space to yourself.

Find Out About Taxes

If you are opting for an extremely popular location, beware of high taxes. You want to go into your purchase with your eyes wide open. If you choose a home that is off the beaten path, you could have a more favorable tax rate.

Learn About Restrictions

You may have restrictions to deal with when you buy a vacation home. From a Home Owner’s Association that stipulates regulations about the care of property to restrictions in paint schemes, you may not have complete freedom with your property.

Look For Excellent Deals

Whether it is due to the strained economy or someone who has to make a property move quickly, you could find a phenomenal deal. Don’t rush into any sale until you’ve reviewed all of your options. Buying a home that is in a community neighboring a hot spot (instead of in the hot spot itself) could make for better prices as well.

A vacation home is a great real estate investment that can make vacation planning much easier. With these tips in hand, you’ll be well equipped to find the perfect vacation home for your budget. 

Buying Land to Build a New Home On? Don’t Forget These Three Important Considerations

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Buying Land to Build a New Home On? Don't Forget These Three Important ConsiderationsWhen most people talk about real estate, they envision buying an already-built house on already-landscaped property. However, buying vacant land and building a new home is a great way to ensure that you get the home that you want in the location that you want. It’s also a major undertaking, which is why you should take these three considerations into account before you buy any land for your new home.

Location, Location, Location: It’s More Important Than You Think

People often hear the phrase “location, location, location” and it’s a very prudent maxim with buying land. The parcel of land that you buy should be in a good geographic location and on stable ground – which means there shouldn’t be any major water sources nearby (like a swamp) and hills should be minimal. You’ll also want to consider zoning regulations that influence the acreage and other regulations that influence how you can and cannot use the land.

Utility Connections Will Be Your Responsibility

New land tends to not have utilities laid out under or over the ground. If this is the case, you will need to invest in electrical, water, and possibly heat utilities for the home.

This process involves communicating between the municipal government and utility companies so that the proper infrastructure is put in place. These costs and the implementation can be quite a headache depending on how isolated the land is from municipal or regional infrastructure.

Access: Look Up Any Easements on the Land

Many homeowners may not realize how legal access to land can affect their purchase. An easement refers to the legal right of other entities to use your land even though they do not own it. Before you buy land, you and your lawyer should investigate whether or not the land has easements, and whether or not these easements may interfere with your goals for the property.

These are just a few of the major considerations you need to make when you buy land. Purchasing a plot of land is quite a bit more complicated than buying a house, and if you’re not prepared, it can easily turn into a nightmare. When properly planned, though, buying land can give you a great backdrop on which to build the house of your dreams.

Home Buying Tips: Three Items to Watch out for in a Purchase Agreement Contract

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Home Buying Tips: Three Items to Watch out for in a Purchase Agreement ContractThe purchase agreement is a vitally important document that outlines the provisions, terms and conditions for the transfer of property.

It should be read carefully and any ambiguities should be clarified prior to signing. It is a legally binding contract between the buyer and seller.

The purchase agreement may vary depending on the location. Most real estate agents use a form that has been approved by a state realtors association.

The seller may have a different version that was drawn up by an attorney. It should not be assumed that they are all the same.

Typically, the purchase agreement will include an inspection period. This allows the buyer time to verify the conditions stated on the purchase agreement. Three of the most important stipulations in the contract are listed below.

All Owners Must Sign the Purchase Agreement

In most cases, the purchase agreement should be signed by the legal owner of the property.

If there is more than one owner, each owner should sign the agreement. In many states, both parties in a married couple have an interest in a property even if the title is held in one party’s name alone. Therefore, the purchase agreement should be signed by both parties of a married couple.

In the event the property is being sold by a corporation, verify that the person signing the agreement is authorized to commit the corporation to the sale.

List All Fixtures to be Transferred with the Sale

The purchase agreement should list all items that are to convey with the property. “Fixtures” are considered items that are attached to the property.

Legally, they should be included with the sale, but more than a few buyers have been dismayed to find the property stripped of countertops, appliances and window coverings. Any fixtures and personal property that are part of the sale should be included in the purchase agreement.

Verify Zoning Ordinances

The purchase agreement may contain various stipulations. One should include the right to cancel the contract if zoning prohibits the use of the property as planned.

Zoning ordinances may restrict the use of buildings or land. This may prove to be an obstacle for someone who intended to include a workshop on the property. The buyer should be able to withdraw from the contract if they discover that zoning prohibits the intended use.