Buying a home is a substantial financial and life commitment. It’s also highly desirable, especially in a region like Roseville. Unfortunately, it can also be a maze of a process. It doesn’t have to be, however.
The Char Ruppel Team is here to offer support with the backing of seasoned and knowledgeable professionals. So, let’s tackle one of the most misunderstood aspects of buying a home: closing costs.
These costs are outside of the actual mortgage, and therefore can cause some confusion. When this is the case, a homebuyer may feel unprepared or lack confidence to cross the finish line of homeownership. Our goal here is to make this process enjoyable and clear. With that in mind, let’s dig into the anatomy of the typical closing costs buyers and sellers will incur during the closing of the loan. Mortgage or origination fees will cover the costs for acquiring a loan. Similarly, the escrow fee will go toward the administrative costs of executing all the steps that lead to the closing of the loan.
Depending on the type of loan the buyer assumes, inspection costs may be needed to satisfy lender requirements and provide peace of mind that the home is move-in ready. Along the same lines, an appraisal is needed to determine the value of the home. Lenders want to see that the value of the home matches the asking price. Prior to moving in, buyers can have two home insurance plans: one to cover any unexpected repairs, and another to protect the integrity of the loan. For instance, a buyer who does not pay at least 20 percent of the home’s value as a down payment may need private mortgage insurance. Keep in mind that the first month of this insurance is typically included in closing costs. In addition, buyers may be subject to a prorated loan interest amount at the time of closing. Closing costs don’t need to be a surprise, or cause a delay to your home buying experience.
With the right help, there will be no surprises and only an undisturbed path toward homeownership. To learn more about buying a home in the Roseville area, please be sure to contact us today.