When you’re closing in on a new Alpharetta home, you have to think beyond the base price you’re willing to pay to convince the seller to accept your offer.
Even when you have agreed on a deal with the seller, there are closing costs and taxes you must settle before you can capture the keys to your new abode. These expenses can impact the quality of your offer as well as the size of your down payment on the home. Budgeting for them now can spare you financial headaches during the later stages of the home buying process. Here are some key costs to note.
When you’re applying for a mortgage for your prospective new home, your mortgage lender may request an appraisal to get an accurate estimate of the property’s market value. The appraisal may be necessary for financing purposes and appraisal fees normally range from $275 to $500. The fee range depends on the type of home you’re purchasing as well as the location.
A property survey outlines any property boundaries while identifying any restrictions and concerns that might negatively impact the home’s value. You may discover overhanging structures or foundational issues that will drive down the price, allowing you to potentially submit a lower offer.
Mortgage lenders may ask for an updated property survey when you’re submitting a mortgage application. You can hire a land surveyor to conduct the survey. Lenders may accept past surveys depending on when they were done.
Your lawyer might suggest that you get a title insurance policy to protect you and the mortgage lender from fraud, zoning issues, and property defects. The lawyer will add the costs of this type of insurance to your legal bill when the home buying process nears completion.
Applicable Fees and Taxes on Closing Day
The government could charge land transfer taxes that are based on the purchase price. Costs typically vary by state, though first-time homebuyers might receive rebates for parts of the cost.
Additionally, homeowners will have to pay property taxes, condo fees, and utilities on closing day. Seller may have prepaid property taxes that you’ll need to pay before you can take ownership of the property. You may also have to pay for light, water, and other utility bills. You pay back the seller for a part of the cost from the closing date forward.
Mortgage Default Insurance
If you’re paying less than a 20% down payment on your home to your mortgage lender, then you will have to pay mortgage default insurance. Lenders will add a premium to the mortgage should your down payment be under 20% and the more risk involved, the higher the insurance premium will be for the prospective buyer.
Included in your closing costs are legal disbursements and fees. The disbursements are any expenses that your legal representative paid for work on your behalf while representing you.
Buying a home is costly, but Alpharetta Zen will ensure that the purchasing process is seamless, so you’re able to finance your home, cover all costs involved and breathe a sigh of relief at the end of everything. Contact one of our agents today to get the process going.