First Time HomeBuying
- Appraisal Fee
- Home Inspection Fee
- Repair & Renovation Cost
- Homeowner's Insurance
- Moving Expenses
Appraisal Fee
Before a lender lends money to you, they would require an appraiser to determine the current market value of the property. In most areas of Texas, be prepared to spend around $300 to $600 for an appraisal, depending on the area and size of the home. This fee is one of the few fees collected up front, but goes directly to the appraiser, not the lender.
Home Inspection Fee
Do not confuse a home inspection with a home appraisal. While a home appraisal helps find the actual value of a property, the purpose of home inspection is to find out if there are any potential problems with the property, for example – structural problems, roofing issues, drainage problems and more. The home inspection cost typically varies from $300 to $500. Though this cost is optional, it is absolutely invaluable and a prudent home buyer should not forego this chance to be sure they are purchasing a home in good condition.
Homeowner’s InsurancE
When buying a property, it’s a must to buy homeowners insurance in some states in the US. Buying an insurance is important because it helps cover the costs associated with damages to your property. It also provides liability coverage in case of any accidents or injuries caused due to a homeowner or their family member’s negligence. For example, some policies even cover the damages caused by household pets. Important Note: It is very common to include the cost of homeowner’s insurance as part of your monthly mortgage payment, but the premium may be paid out of pocket if you wish.
Moving Expenses
An often overlooked cost of purchasing a new home is moving expenses. Whether you are renting a truck and paying your friends in pizza and drinks, or hiring a professional moving company to pack and/or move your belongings, this cost should not be overlooked. In addition to movers, there are also setup and connections fees for various service providers such as electric, gas, tv, internet, water, etc.
Repair and Renovation Cost
If you buy a home that was already occupied previously, then there are chances that you may need to spend some money on the repairs and maintenance. In addition to repair costs, renovation costs also form a significant part of the additional costs borne by home buyers. In fact one of the reasons people buy their own property is, that unlike a rented house where there are a lot of restrictions in terms of the modifications one can do, one can modify their own house according to their whims and fancies.
"Loans are what we do, not who we are."- CEO, Steve Jacobson
“Loans are what we do, not who we are.”
– CEO, Steve Jacobson
This may vary depending upon the specific type of mortgage you are applying for, as different agencies will need to be involved in the process. Typically the process plays out in a month or less, though some will go quicker. It is not uncommon to have the mortgage application processed within 10 days. It is critical that you get the application entirely completed, so that you can avoid any delays along the way.
The main thing that can delay the approval of a loan is failing to properly and completely fill out the applications. It is also important that you be completely honest on the applications, as any discrepancies may cause delays. In addition, changing jobs, having a change in your salary, changing your marital status or taking on additional debt can delay the approval of a loan.
Closing costs include items such as taxes, title fees and hazard insurance. Sometimes what is included in closing costs varies, and it can be impacted by the negotiation process on the sale price of the home, as the homeowners may or may not cover certain closing costs. You’ll want to have some money set aside to cover your closing costs.
Prepaids are items that you as the homebuyer pay at closing. This is a payment before the actual due date. These may be necessary depending upon the details of the closing. They include taxes, hazard insurance and other various assessments.
After you close, you’ll receive a letter that includes all of the dates and information that you need. If you want further details while you are closing, you should inquire about the specific due date of the first payment.