House-hunting in the Alpharetta area? At this point, you may have found the perfect home for you and your family and are financially preparing for buying an Alpharetta real estate property. But do you know of all the costs to keep in mind when planning your mortgage application or home offer price?
As you explore and find your dream house on the Alpharetta real estate market, it is important to have a thorough understanding of all closing costs involved. As you plan your finances and the offer you will submit, remember these 5 facts about closing costs:
1. Your Closing Costs Depend on Location and Home Price
While it would be convenient for you, unfortunately, you can’t set aside one set amount for all home closing costs. They will vary according to the value of the house and the demand for its location.
However, you can prepare yourself by generally expecting to pay around 2-5% of your mortgage loan principal.
2. Closing Costs Can Be Broken Down Into Two Main Categories
Closing costs will either be property-related fees or mortgage-related fees.
Property-related fees involve the costs of determining the house value. Your lender will accumulate these costs when financing your potential future house. These include:
- Appraisal fees
- Inspection costs
- Title search
- Title insurance
Mortgage-related fees involve the pricing of your application process. They are composed of:
- Credit report cost
- Loan initiation fees
- Mortgage discount points
- Application fees
- Costs of evaluating your mortgage
3. Average Closing Costs in Georgia
In our state, home values are regularly averaged between $200,000-$300,000. So, you can expect that you will need to pay thousands of dollars in costs. Mortgage rate projections can also help you find the right ballpark of closing cost pricing for future purchases.
4. You Can Generally Estimate Your Potential Alpharetta Property’s Closing Costs
Some sources offer a closing cost calculator for you to use. With these, you can plug your ideal house price, down payment budget, loan interest rates, and more.
You can also break down the closing costs to understand every fee accumulated and find the total sum.
5. Some Mortgages Include No Closing Costs
Normally, you are required to pay your Alpharetta real estate property’s closing costs all at once when buying your dream home. However, some mortgages actually include the price of the closing costs in them. That way, you can distribute your payment, so you’re not overwhelmed by the costs upfront. This would be negotiated with your lender so you can find a system that works best for all parties involved.
Knowing what to expect with buying your next Alpharetta real estate property will ensure you are prepared and can secure the house you want. Whether you’ve already found your dream home or are just beginning your hunt, your AlpharettaZen real estate agents are here to help. We will guide you through a smooth, stress-free buying process. To learn about what’s on the Alpharetta market or how to prepare for your next purchase, contact us now.