Home Buying in Mountain View>Question Details

Luis, Home Buyer in Mountain View, CA

how much really one needs to pay for lets say a 300k home?

Asked by Luis, Mountain View, CA Thu Jun 19, 2008

Hello,

I wonder if somebody could please do break down of all the expenses that one needs to do for a 300k home. If posible please provide information for two scenarios:

1) using cash to pay teh house
2) using a loan

Basically I want to know how mucho money in total one needs to have to buy a 300k house (appraisal, escrow fees, title, losing costs, etc) I'm new on this and I would like to get an idea.

Thanks
Luis

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Answers

6
Hi Luis,

It will depend on how much you want to put down for payment . If you are going to put down 20% then it would be around $1890 monthly mortgage payment and the closing cost is around $9135. If you are first home buyer then you can qualify for 3% down payment by applying for government back up loan such as CALFHA. For more detail you can request for more information on my website
0 votes Thank Flag Link Mon Jun 23, 2008
Hi Luis,
I do mortgages so here's what I would estimate closing costs to be for my client. However the fees will vary for you depending on the vendors.

- Appraisal $200-400
- Credit report $25
- Lender fees $800-1000
- Escrow & title fees $300-500, lender's title insur depends on your loan amount
- Recording fee $100
- City and/or county transfer tax - depends in city/county. Est about $500 for Mt View
- Hazard insurance premium - $500-800, may be more if flood insurance is needed. Condos/townhomes usually have HOA that covers insurance.
- Inspections if you desire - $300-800
- Prepaid prorated interest & property tax - depends in interest rate & when you close. Probably $1000-3000

Total probably around $5000-7000

If you pay all cash, then these are not needed: appraisal, credit report, lender fees, lender's title insurance - altogether about $1500-2000

If you're dealing with a special situation like buying a brand new home or foreclosed property, then you may end up paying for other fees as well.
0 votes Thank Flag Link Thu Jun 19, 2008
Luis,
You can negotiate the closing cost to be what you want. This is something you'd need to discuss with your Realtor. You can also ask your Realtor to get an estimate of closing cost form the title company for a home you have in mind or a home close to what you're looking for. This will give you the most accurate data.

Good luck with your search!
0 votes Thank Flag Link Thu Jun 19, 2008
Greetings Luis,
The primary difference between buying a home with cash or using a loan are the direct costs of acquiring the loan, plus the title insurance the lender will require. Your lender will charge you an application fee, appraisal fee, other miscellaneous costs, plus any points should you desire to buy down the interest rate of the loan.
This may sound confusing, but once you see a HUD statement, it will make more sense. When you talk to your lender, ask her/him what they will be charging. The Title Co will charge about 1.5% for the insurance for the title.
All the other costs associated with buying the home will be the same, no matter how you purchase the home.
Happy House Hunting!
Linda Baker
0 votes Thank Flag Link Thu Jun 19, 2008
A cash purchase would be a bit less than Shel-lee stated, and it could come to nearly 4%, depending on the loan type. This does not include the down payment. It is also possible that you may not need to pay anything.
0 votes Thank Flag Link Thu Jun 19, 2008
Luis:

As a rule of thumb, buyer's closing costs are 3% of the purchase price plus whatever points you are paying for the loan. Of course, everything is negotiable, but on a $300K purchase this should be close.

Wishing you the best of luck in finding your new home and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Thu Jun 19, 2008
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