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You're probably wondering how much money you need saved for the home buying process. I like to educate my clients on what they can expect to pay out of pocket.
You're probably wondering how much money you need saved for the home buying process. I like to educate my clients on what they can expect to pay out of pocket.
Commission
Commission
First off, you DO NOT have to pay me a commission! Check that off your list of worries because the Seller pays my commission.
First off, you DO NOT have to pay me a commission! Check that off your list of worries because the Seller pays my commission.
Down Payment: 0-5% of home loan
Down Payment: 0-5% of home loan
The type of loan you qualify for will determine how much money you need to save for. For instance, a FHA loan might cover your down payment entirely, or require you to pay about 3.5% of the home loan. To give you an idea, if the home you're buying is worth $350,000 than 3.5% of that would be $12,250.
The type of loan you qualify for will determine how much money you need to save for. For instance, a FHA loan might cover your down payment entirely, or require you to pay about 3.5% of the home loan. To give you an idea, if the home you're buying is worth $350,000 than 3.5% of that would be $12,250.
Earnest Money: at least 1% of home price
Earnest Money: at least 1% of home price
Earnest Money is put down by the Buyer (you) to show the Seller that they are entering a real estate transaction in good faith. This will eventually go towards the home loan.
Earnest Money is put down by the Buyer (you) to show the Seller that they are entering a real estate transaction in good faith. This will eventually go towards the home loan.
Typically what's expected as good earnest money is 1% of the home price. For instance, if the home you're buying is $350,000 then you would need $3,500 down for earnest money.
Typically what's expected as good earnest money is 1% of the home price. For instance, if the home you're buying is $350,000 then you would need $3,500 down for earnest money.
However in today's competitive market, strong offers come with earnest money in the amount of $10,000 and higher. You don't necessarily need that much to compete in this market, but the more earnest money you can put down, the stronger our offer will be.
However in today's competitive market, strong offers come with earnest money in the amount of $10,000 and higher. You don't necessarily need that much to compete in this market, but the more earnest money you can put down, the stronger our offer will be.
Closing Costs: 1.5%-4% of the loan
Closing Costs: 1.5%-4% of the loan
Closing costs are a function of a myriad of different things. Everything from your loan type, loan amount, origination & underwriting fees, if there is an HOA transfer fee, if you buy points, recording fees etc. In Utah, and with my preferred lenders, I've seen closing costs anywhere from 1.5 - 4% of the loan. No matter what lender you choose, they will provide you with a Loan Estimate within 3 days of us going under contract on your home.
Closing costs are a function of a myriad of different things. Everything from your loan type, loan amount, origination & underwriting fees, if there is an HOA transfer fee, if you buy points, recording fees etc. In Utah, and with my preferred lenders, I've seen closing costs anywhere from 1.5 - 4% of the loan. No matter what lender you choose, they will provide you with a Loan Estimate within 3 days of us going under contract on your home.
In my professional opinion, it is more important to have a proficient, professional, and expert lender on your team who will close your loan on time with no issues, than it is to shop for a lender who might charge less in closing costs but risks the success of your loan.
In my professional opinion, it is more important to have a proficient, professional, and expert lender on your team who will close your loan on time with no issues, than it is to shop for a lender who might charge less in closing costs but risks the success of your loan.
In this Seller's Market, Buyers are expected to pay their own closing costs. Once you are prequalified we can talk to your lender to see how much those are going to be.
In this Seller's Market, Buyers are expected to pay their own closing costs. Once you are prequalified we can talk to your lender to see how much those are going to be.
Home Inspection: $300-$500
Home Inspection: $300-$500
Once we're under contract, you'll need to order a home inspection. I have many home inspectors I work with that we can call, but you can expect the cost to be anywhere from $300-$500.
Once we're under contract, you'll need to order a home inspection. I have many home inspectors I work with that we can call, but you can expect the cost to be anywhere from $300-$500.
Don't let these numbers discourage you!
Don't let these numbers discourage you!
My intent is not to scare you, or leave you feeling doomed that your dream home may be further away than you thought. I'm telling you this so you can be prepared and have no surprises at the closing table. It's important that you know where you are at, so you can asses where to go next.
My intent is not to scare you, or leave you feeling doomed that your dream home may be further away than you thought. I'm telling you this so you can be prepared and have no surprises at the closing table. It's important that you know where you are at, so you can asses where to go next.
This is where our goal setting comes in. Maybe we need to wait 6-8 months in order to save and be better positioned for you to move forward. That's totally normal! I'm in it with you for the long haul, and will help your bring your real estate dreams to reality no matter how long that takes!
This is where our goal setting comes in. Maybe we need to wait 6-8 months in order to save and be better positioned for you to move forward. That's totally normal! I'm in it with you for the long haul, and will help your bring your real estate dreams to reality no matter how long that takes!
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