A First-Time for Everything (including closing costs)

FIRST-TIME HOMEBUYERS

512 Nebraska Street

This week I have had the pleasure of closing on two homes with first-time buyers.  On Monday, I handed over the keys to 512 Nebraska Street to a young couple who will be getting married in a couple of weeks.  The excitement of moving as well as the stress of starting a new job and the upcoming wedding were evident throughout the home buying process for Jared and Kristi.  Nonetheless, I could feel their relief for finally having a place to call their own.

208 East 9th Street

 
Today, another buyer, Cody, moves into 208 E 9th Street as he continues his education at Wayne State.  This young man has a great future ahead of him and a great place to spend his college years.  I'm sure he will make lots of memories at his new home! Welcome Home to both sets of new owners!


CLOSING COSTS

Many people have been asking me about closing costs during the past few weeks, so I want to provide some insight into those little buggers for those who have not had the experience of buying a home.  In essence, there are two sides to the world of closing costs:  the real estate side and the banking side.  The real estate side is unavoidable in most instances.  Typical closing costs for purchasing a home include:

-Title Insurance (customarily split 1/2 buyer and 1/2 seller)
-Deed Filing Fee (to give public knowledge of the property transfer) and
-Termite Inspection or other requested inspections (typically paid by the buyer) 

The above costs reflect those involved even if you do not need to get a loan.  A lender's closing costs might include:

-Loan Origination Fee (usually 1-2% of the loan amount - this is how the lender gets paid for their work)
-Discount Points (essentially prepaid interest to lower the effective interest rate throughout the life of the loan)
-Appraisal Fee
-Credit Report Fee
-Tax Service Fee
-Flood Certification
-Insurance and Interest Escrows (3-6 months usually paid up front)
-Mortgage Filing Fee

Remember, these fees are in addition to the title insurance, deed filing, and inspection fees.  This is not an "all inclusive" lists, however, it does cover many of the most common closing costs.  Most buyers can expect to pay between $2,000 to $3,000 in closing costs.

In addition, as a home buyer, you are also generally required to make an earnest money deposit of $500 to $1,000 when you make an offer on a home.  That money is deposited in a trust account with your real estate agent or escrow company until closing.  At closing, it is credited towards the purchase price of the home.  Your lender may also require an application fee to begin the loan application process.  These fees can vary depending on the lender.

For additional information about the true cost of buying a home, feel free to contact me at 1st Realty by calling (402) 375-1477 or e-mailing thansen@1strealtysales.com.  Welcome Home!