Tuesday March 23, 2021
The process of closing on a house can be long and time-consuming. However, you can eliminate a lot of the hassle and stress involved if you know what to expect.
Mortgage loan payments are the largest expense involved in buying a home. But they aren't the only ones. You'll also have to budget for:
- Escrow payments. If your down payment is less than 20% of the value of the home, you'll need to pay an escrow to your mortgage lender. This money is then used to pay property taxes.
- Private mortgage insurance (PMI). If the bank owns more than 80% of the equity on your home, you'll need to pay for private mortgage insurance to cover damage that may occur before you pay off your loan.
- Title insurance. Title insurance protects your investment in the event something was wrong with the original title. Your lender may also require you to buy lender's title insurance to protect the lender in the event of legal issues.
- Assorted fees and taxes. These include a transfer tax, homeowner association fees, credits toward closing costs, attorney fees, and your real estate agent's commission.
The Final Walkthrough
It's wise to do a final, thorough examination of your home before you assume ownership. Make sure the seller isn't leaving anything behind. Check electrical fixtures, outlets, faucets, water heaters, and the AC to ensure everything is in good working order. Look for signs of insect infestation, mold, or other forms of damage.
You shouldn't find significant problems, especially if you inspected the home thoroughly before agreeing to buy it. Even so, buying a home is a large investment and you want to make sure there are no unpleasant surprises, no matter how small. If you do find something wrong, you may be able to renegotiate the contract terms.
Get Help from the Pros
Are you looking for a beautiful new home in an ideal location? Would you like professional help that will make it easy for you to obtain a mortgage loan and close a home without undue hassle or delay?
Landmark 24 offers homes in multiple neighborhoods and in various sizes and price points to make it easy for you to purchase the home that best meets your needs. What's more, we work with a team of preferred lenders to provide you with the efficient financial assistance you need to obtain a mortgage loan and cover home closing costs. Get in touch with us to learn more or to start the process of buying the home of your dreams.