Buyer's Guide
Your Monthly Payment
One of the many misconceptions facing a buyer is the TOTAL monthly payment. Too often buyers receive an estimated monthly payment for a certain price and fail to realize the extras that are attached to that payment. Some of these extras may include:
- Mortgage Insurance
- Home Owner's Insurance
- Flood Insurance
- Earthquake Insurance
Your mortgage broker will help you to understand any additions to your monthly payment. Occasionally these payments surface just before closing. To protect yourself from being caught off guard ask your mortgage broker to check if any of these items will be added to your payment.
Closing Costs to Plan On
The amount of closing costs a buyer must pay can vary drastically. Most buyers should plan on the following fees to be added to their closing costs:
- Title Insurance
- Title Fees
- Pro-rated Property Taxes
- Pro-rated Utility Taxes
- Lending Fees
- Down Payments (usually 3% or more of the purchase price)
When a buyer pays cash for the home, many of the above fees will not show up on closing costs. Regardless if you get a loan or pay for your home with cash, your real estate team will help you understand what fees you will be charged.
Buyer's Options on Offers
All too often buyers elect to forgo placing an offer on a home over various concerns. It is important to remember that just about anything can be negotiated and your real estate agent will walk you through each case. Some of the most common options a buyer may exercise are:
- Wrapping closing costs into the loan
- Flexible move-in dates
- Leasebacks
- Contingencies with the sale of the buyer's home