Home Buying in 91942>Question Details

Alexandra, Home Buyer in San Diego, CA

what are the extra costs I'm not expecting (other than my mortgage)?

Asked by Alexandra, San Diego, CA Sun Jan 2, 2011

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If you already have a house in mind or at least an area then you will be better prepared to know the costs as they are dependant on area for property taxes, HOA fees, and property insurance.

On a monthly basis there is PITI, Principal, Interest, Taxes, Insurance.

Principal - The Amount of the loan

Interest - The cost to borrow the money

Taxes - can be anywhere from 1% of the sales price to 2% of the sales price.

Insurance - Property Insurance

Depending on the type of loan you get these items may be included in your payment. Also there could also be PMI insurance depending on your loan.

You really need to speak to a lender who will explain in detail the costs associated with the property you are thinking of purchasing.

Here's a PITI calculator, http://www.realestateabc.com/calculators/PITI.htm you can experiment with but ultimately speaking to an experienced lender will give you the best information:

~~~
0 votes Thank Flag Link Mon Jan 3, 2011
Hi Alexandra,

Here's what you'll need in a nutshell:

DOWN PAYMENT (conventional loan is typically 20% of the purchase price, FHA loans are 3.5%)
CLOSING COSTS (you can ask the seller to pay most or all, depending on the type of loan, and REO owners, banks, will typically allow up to 3%)

When you get an offer accepted, you'll pay these out of pocket your first week:
HOME INSPECTION(S) - depends on the size of the home, say $250 to $500, also depends on what's inspected
APPRAISAL - around $500

It's very important that you submit offers on homes that will work for your loan type, please use an agent that knows. I hear of many first time buyers that get into escrow and they fall out because of things like owner occupancy of a condo, when this is usually easily obtained up front. $800 is a lot of money to pay on a property you never have a chance of living in.

Termite inspection and active infestation repairs are customarily paid for by the seller, so ask for these in your offer - same for the Home Warranty.

Not all agents use a transaction coordinator, I don't, I like to know where my documents are at all times. I soured on them before I even got my license, paying fees for document handlers that lost paperwork, failed to get signatures on time, etc. I also used them as an agent and found it was one more person to keep track of. Many agents swear by them! I don't use assistants for the same reason.

Try to keep a pad of money for after closing so you can buy furniture or whatever you need (or want!). Do not buy any big ticket items while you're in escrow. It could change your credit report and affect qualifying for your loan. Lenders pull credit right before the end of escrow.

I live in the 91942 zip code of La Mesa, and you may find similar houses in San Carlos, right next door to us, in the 92119 zip code.

Let me know if I can answer any questions for you. Happy house hunting!
0 votes Thank Flag Link Sun Jan 2, 2011
Alexandra
There are a few other cost that you may have to pay when you buy a home. Your lender should have disclosed the cost associated with the origination of the loan. This should include, origination, title, escrow, loan processing, underwriting and document fees among other costs.
You also should have the property inspected by a professional, licensed home inspector this can cost $275 to $500 depending on the size of the home. I
f the seller will not pay for a termite inspection or repairs this may be a cost you will face. Usually a Realtor can get the inspection done for free. The seller may pay for the repairs but if it is a short sale or foreclosure that may not be the case.
I strongly recommend getting a home warranty and hope that you never need to use it. They run from Around $350 to $600 depending on the size of the home and what is covered.This may be covered by the seller but usually not in the case of short sales or foreclosures.
One other fee that you usually will have is a transaction coordinator fee. that usually is around $350 to $400. This is the fee for the person who handles all of the paperwork for your transaction and makes sure everything is done within the established time lines.
I grew up in La Mesa and think it is a great place to live. Let me know if you have any other questions.

Jerry Heard
619-920-9796
jerry.sdps@cox.net
0 votes Thank Flag Link Sun Jan 2, 2011
Alexandra,

There are different costs as said before that you do not expect like taxes, insurance, HOA (only if the property has this), etc. However you also want to consider that owning a home is also a great tax benefit for yourself. Property taxes can be calculated monthly with your mortgage payment if you choose or sometime required depending on the loan program, this way you are not surprised with a huge bill for the property taxes. Talking with a broker or loan officer for a detailed estimate will be best but you can get a rough idea from http://www.homebuyingtips.net/Calculator_TotalMonthly.htm this possibly could help you with an idea of your overall monthly payment. Good luck hope this helps :) -Alisha Sears
0 votes Thank Flag Link Sun Jan 2, 2011
Here is one that everyone seems to forget: Supplemental Property Taxes. This is the most insane monument to government stupidity that We The People allow our incompetent, bloated, ineffective, and corrupt government to lay on us. This can be a little complicated, but here is a simple example of how it works:
- The seller bought the house 20 years ago for $100,00 and the tax rate is1.25%.
- You buy the house January 1st for $200,000 and the tax rate is still 1.25% (we could only hope...)
- That means the seller was paying $1,250 per year in taxes and your new tax bill is $2,500 per year.
- Taxes are always paid in advance, so at close of escrow you will reimburse the seller for taxes that he pre-paid on December 10th that cover that date through from April 10th, the next date when taxes are due. Escrow will include the tax reimbursement amount in the list of closing costs.
- Here's the insanity: although you are liable from January 1st (day you take ownership) for taxes at your new, higher annual amount, escrow will collect from you only the amount that the seller already paid at his old rate. That means that in early 2011, usually around March, you will receive a bill from the county for the difference between what you reimbursed the seller during escrow and the amount that you actually owe. Most buyers completely forget that this tax bill is going to show up.
Hopefully your agent has provided you with a written disclosure/worksheet estimating the supplemental taxes that will be due.
Why the county doesn't collect the full amount at close of escrow, thus saving the expense of a second billing, is proof that the idiots are running the asylum.
0 votes Thank Flag Link Sun Jan 2, 2011
Alexandra -

If it is a condo -
1.) HOA
2.) Special Assessment fees
3.) Home insurance/ Personal Property Insurance
4.) Interior maintenance and/or upgrades/upkeep (plumbing, electrical)
5.) Major appliance repair/replacement over time
6.) Property Taxes

If it is a Home without a Home Owners Association

1.) Exterior maintenance (painting, roof, landscaping, etc)
2.) Interior maintenance and/or upgrades/upkeep
3.) Major appliance repair/replacement over time
4.) Home Insurance
5.) Property Taxes
6.) Possible subdivision or city special assessments

Related to the loan:
1.) Impounds for insurance/taxes in advance
2.) Mortgage insurance
3.) Transfer taxes on the sale itself
4.) Prorated insurance, interest
5.) Mortgage insurance premium at time of purchase
6.) Home Warranty

I am sure I have missed something but go over everything with your agent and loan officer.
Specifically the good faith estimate will help with the loan related items.
Many industry professionals recommend setting aside 1-3% of home value toward annual maintenance items.

CJ
Web Reference: http://www.TalkToCJ.com
0 votes Thank Flag Link Sun Jan 2, 2011
...and a few more things! You will want to get a home inspection ($375 - $475) and you will likely pay for your appraisal which has a similar cost.



~Dave

Dave Dennis
Real Estate Consultant

Keller Williams - La Mesa
4700 Spring Street, #180
La Mesa, CA 91941

Direct: 619-987-9484
Fax: 619-270-9832

CA Real Estate Lic. # 01343870


Search ALL Foreclosures and Short Sales:
http://www.SuperSanDiegoHomes.com
0 votes Thank Flag Link Sun Jan 2, 2011
Hello Alexandra,

You'll want to consider property taxes and insurance on your home. Taxes in San Diego County average 1.25% of the sales price. As a simple example, a sales price of $100,000 would mean $1,250 in annual property taxes. Home insurance varies depening on many factors. You can call an insurance agent or two and get a quote for the home you are interested in. I can put you in touch with a couple good insurance agents if you are interested.

Lastly, if the home you buy needs some fixing up; take a very realistic look at the costs. Carpet, paint, popcorn ceilings...all can add up to a hefty bill.

Hope this helps you. Feel free to contact me directly with further questions.



~Dave

Dave Dennis
Real Estate Consultant

Keller Williams - La Mesa
4700 Spring Street, #180
La Mesa, CA 91941

Direct: 619-987-9484
Fax: 619-270-9832

CA Real Estate Lic. # 01343870


Search ALL Foreclosures and Short Sales:
http://www.SuperSanDiegoHomes.com
0 votes Thank Flag Link Sun Jan 2, 2011
Alexandra,

Your question is a bit unclear. The expenses involved in owning a home are condo can be different. Depending upon the neighborhood and HOA, you will need to consider homeowners insurance, earthquake insurance, gas & electric, water, cable, trash, HOA fees, other community fees, property taxes, mello roos taxes, home maintenance,

Hope this helps!

Kind Regards,
Marcie Sands, REALTOR
760-644-1562
Simply The Best Real Estate Co,. Inc.
0 votes Thank Flag Link Sun Jan 2, 2011
Hi Alexandra, Are you referrting to the buyer costs?

Need more explanation of your question, it depends on the property that you wish to buy, but there will be
taxes, insurance, Possible HOA, if a condo.

Drop me a line and I can send you a full list

Kind Regards
Michael Barron
Realtor
First Team Real Estate
0 votes Thank Flag Link Sun Jan 2, 2011
For all costs involved with your purchase, ask your loan officer and or attorney for a good faith estimate--your agent can also help you with an answer.
0 votes Thank Flag Link Sun Jan 2, 2011
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