4 costs homebuyers should consider from the start
08/15/2014 | Author: Jaime Lee
If you're using the Internet to start your search for a new home, you know that most home-search websites let you search by price range. But a real estate purchase will cost you more than just the sale price. Consumer Affairs explains four of the costs homebuyers should consider before submitting an offer.
- Downpayment Some lenders require a 20% downpayment at closing. While it can take time to save up that much, paying a lump sum up front will lower your monthly payment.
- Monthly payment Your payments will cover principal, interest, taxes, and insurance. You may also have other recurring expenses, such as HOA dues, that you should factor into your budget.
- Mortgage insurance If you don't pay at least 20% of the purchase price as a downpayment, your lender will probably require you to pay private mortgage insurance (PMI). This isn't insurance for you—it protects the lender if you default on the loan.
- Closing costs A buyer and a seller can negotiate how much each party pays at closing. But unless the seller agrees to pay all of the closing costs, you'll be responsible for paying a portion of these fees.
When you're ready to become a homeowner, contact a Texas REALTOR® to determine how much you can realistically afford.
The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.
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