Home Buying Cost Outline

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Very often Buyers have limited knowledge of the financial requirements of buying a home, Where does the money go & when? Below is a brief cost outline of the home buying process. Reflects only estimated costs, meant to give you an overview. Your lender can provide a more accurate estimate, but this will familiarize you with the process. When a specific property is chosen,  your lender can be even more specific. I’ve used a purchase price of $250,000 below, but contact me and I can create an outline for any purchase price and APR.

Estimate Only – Please call with any questions. Applies to Single Family Homes.

Monthly Payment: LP $250,000
P& I @ 4.0%……… $1200.00
Taxes & Ins…………..$250.00 estimate based on $1500/yr Insurance & $1500/yr property taxes
Est. payment..……$1450.00/mo.
You can adjust P & I about $30/mo, up or down, for every $5,000 in purchase price & about $30/mo for every 1/4 point in interest rate. Taxes & Insurance will also be affected as purchase price raises or lowers.
Without specific property & lender /attorney numbers, ballpark estimate only
Check with your lender, they can also provide you with an estimate of monthly payments & closing costs.
Out of Pocket at time of contract:

Earnest Money on $250,000…..$500-$1000 Will go towards closing costs if needed.
Appraisal…………………….……………$450+-
Home Inspection………….………….$350+-
Approx upfront………………..……$1300-$1800
Due At Closing: Closing Costs numbers without specific property only estimate. Usually 3% +- of purchase price.
Loan Origination, 1%………………..$2500 This can vary between lenders. Ask Lender what they charge.
Attorney/Title Fees…………………. $1700+-
1 year Homeowners Ins……………$1500+- (based on no flood ins being required)
Escrow 6 months Taxes & Ins……$1500+- Based on $125 taxes/mo & $125 Ins/mo
Prorations on Taxes, HOA fees……$600+- ( hard to know without specific property, closing date…)
Misc Fees………………………………….….$200+-
Approx total cash to close…….…..8000+- We may get seller to pay for part or most.
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IF a VA Loan, the VA funding fee is a cost not collected at closing but usually rolled into the mortgage.
VA Funding Fee 2.15%*…………….$5375 on $250,000 (*if first time using VA loan)
Subsequent VA Loans 3.3%……….$8250
Reduces to 1.5% with $5% down payment, and 1.25% with 10% down

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