Whether buying or selling a home in Hunters Creek, Orlando, Florida, with any real estate transaction you will encounter what are called closing costs. These are costs which are often in addition to the actual purchase/sale price of a property. Right now one of the best home tips we can give is to explain what these costs are.
Although they are part of every day life for real estate agents, these costs can often be a mystery to buyers and sellers, so let us try and explain some of the common ones in the best way possible:
1. Down Payment – this may seem obvious and an easy one to figure out – it is! This is the amount that you put down to purchase a property, the amount can vary, if you can qualify for an FHA loan it can be as little as 3.5%, or if you follow most financial experts advice, then 20% is best.
2. Credit Score/Credit Report – Obtaining your credit report and credit score is an excellent idea to undertake – consider pulling this information before you go ahead and start the moving process, that way you can work on fixing any errors. When it comes to closing costs there is usually a charge to purchasers for this information, but it is usually nominal ($10-$50).
3. Home Inspections – When buying your new home in Hunters Creek, always get a home inspection. Even though the homes in Hunters Creek are relatively new, there can be some issues that may not be apparent at first glance. A home inspection can take a few hours and the cost is usually between $300 and $500. It is definitely money well spent as it could identify expensive problems that could cost thousands down the road.
4. Loan Origination Fees and Points: These are the fees in relation to your mortgage. Origination fees are paid to the lender for writing and processing the loan. Points are prepaid interest to a lender, this is common practice and generally the more points you pay the lower the interest rate. Typically for each point purchases the loan rate is reduced by 1/8th of a percent. In all these fees can be several thousand dollars.
5. Appraisal – this is a detailed valuation of your home for the lender, it protects them from investing in a property which is worth less than is being paid for it. The appraisal helps you know the true market value of the home. Lenders base their loan amount bad on this document. The cost is usually a few hundred dollars.
6. Private Mortgage Insurance (PMI) – PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home’s value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI. It is designed to protect the lender if you default on your loan. The cost is usually an added amount per month in addition to the mortgage payment as well as an up front fee at closing.
7. Notary Fees – These are usually modest, Florida regulates the amount a notary can charge to no more than $10. But the charge is often more if a notary has to travel has other costs involved which are passed on to the buyer/seller at closing.
At the moment with home affordability at a fantastic level in Hunters Creek, it is no wonder so many people are looking to buy! The best tip we can give is to go ahead and get your hands on a Hunters Creek home now! Read our article about “Hunters Creek Living: Making Moving/Relocating Easier & Less Stressful” for moving tips.
If you are looking to sell your home in Hunters Creek or are a buyer who is looking for a perfect home in Hunters C reek then contact us today for professional real estate assistance.