what are the costs associated with a home purchase?

Asked by Ba, California Fri Apr 8, 2011

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Jim Garcia -…, Agent, Castle Rock, CO
Sun May 1, 2011
Costs associated with purchasing a home vary considerably. Sometimes you might be able to negotiate the costs into your contract - such as seller concessions to help pay for the costs of the loan. This varys 0-4%. Costs of your buyer agent fee costs nothing to the buyer in Colorado - seller pays for that cost. Many items are standard in a Colorado contract. However, depending upon the type of loan, amount of loan, type of seller (Retail, Short Sale, Corporate, Bank or Government owned) costs (and negotiating ability) vary considerably and are highly negotiable. Since your Buyer Agent costs you nothing and is your "hired gun", I would suggest finding a seasoned Buyer Agent who you trust and understands the market, financing, negotiations,etc. very well.

In short, buyer costs are negligable if you negotiate a great deal up front.
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Joyce Sedam, Agent, Centennial, CO
Mon Apr 11, 2011
Simply put on a $200,000 home, FHA financing, Plan on 2-3% of purchase price for closing costs (lender and title fees + all other fees).
PLUS -Earnest money and down payment (earnest $ will be part of down payment)
Inspection (include radon) $200-$350
(might need a structural, roof certification, sewer scope too)
Appraisal $400-500
Survey $200-300 (optional)
Escrowed HOA fees
Escrowed Property tax
Escrowed Home Owners Insurance

Many times Buyer is requesting assistance with closing costs from the Seller.

Hope this helps.

Joyce Sedam
Web Reference:  http://www.JoyceSedam.com
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Corey Martin, Agent, Englewood, CO
Fri Apr 8, 2011
Outside the Mortgage costs you will have your Inspection fee which runs $250+ depending on size and that is just for a general home inspection. If you add Radon, Mold, Sewer Scope, etc you could add another $300. So you are looking at or around $600. Apprasial fee should be covered by mortgage broker unless the deal falls you would be required to pay that back in most cases.
Now if you buy a Bank Owned Property you may be required to pay a de-winterization fee, part if not all HOA Transfer fees and sometimes Title Insurance.
Hope this helps. If you have any other specific questions please feel free to call or email me. I'm a Buyers Agent so all I do is help people purchase homes.
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Karin Fischer, , Aurora, CO
Fri Apr 8, 2011
There are very little Real Estate fees! If you do an inspection, you will pay for that up front. Usually about $300 - $400. If you want to do an appraisal, that would be about $400 paid directly to the appraiser. Some cash buyers do an ILC (Improvement Location Certificate) to make sure there are no encumbrances on the property like your neighbor's fence on your property. That's about $150. So far, all these are optional.

The only thing you really must pay for is the cost of closing the transaction with title: about $300 and that is customarily split between Seller and Buyer.

If you buy a foreclosure, sometimes you have to pay for the title policy and that depends on the cost of the home. For $250,000, maybe $1000 or so.

If there are HOA's, you'll have to pay the prorated cost up front and maybe a transfer fee or capitol reserve fee.

Finally, your property insurance will have to be paid for the year directly to your insurer.

I think that wraps it up!
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Ruth Crawford, Agent, Fort Worth, TX
Fri Apr 8, 2011
The cost to purchase a home varies greatly, with much of the variance depending upon the type of financing you are able to get. Speaking in terms of cash out of pocket, in general, you can estimate putting down 3.5% for an FHA loan. 10-20% down for a conventional loan. And of course, there's the 0 down VA loan, if you qualify. And although scarce, there are still 100% loans available for those who do not qualify for VA. Contact me for this info. In addition to your down payment, there are closing costs. These costs are determined by the type of mortgage loan you're getting, interest rate buy-down (aka points) and other lender costs, taxes, insurance, and a myriad of other fees applicable, as well as terms agreed upon between the Buyer and Seller. And you be aware that some states have higher closing costs than others. The general rule is to have 2-6% "extra" cash available to pay for closing costs. Again, these are generalties, but they should give you a "jumping off" idea.
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Ba, Both Buyer And Seller, California
Fri Apr 8, 2011
Thank you for your answers.
We have excellent credit 800+ scores.
We can easily put 50%-100 down depending on the property we choose.
I am just wondering if there is a rough estimate of %s.
I understand you have to weigh points vs no points.
I was looking for general information on cost %s outside of the mortgage.
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Bramer Thomas…, Agent, Parker, CO
Fri Apr 8, 2011
... and as Tim stated, there are specific costs associate with a loan as well. A lender is the best place to go for those costs. - Brian
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Janice Nelson, Agent, Franktown, CO
Fri Apr 8, 2011
There is title insurance, the cost of an inspection and appraisal, and costs associated with a loan. I have a cost estimating tool that will identify specific costs that would be associated with a specific property. I would be happy to share, if you are interested.
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Lynne Wright, Agent, Parker, CO
Fri Apr 8, 2011
Dear Buyer and Seller in Cali: When you are buying a home, depending on the income you make, how it is made, and the credit score history, a home can be bought with NO MONEY DOWN still in this day and age. Certain areas in all states have special programs to buy in those specific areas. The best advise that can be given to you at this point, is 1) know your credit score - you can obtain this for free directly from the credit bureaus (1 annually) 2) Meet with a Lender in your direct area of interest. 3) Work with a reputable agent and have something in writing with that agent to represent your interests. It's a great time to invest in Real Estate.
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Bramer Thomas…, Agent, Parker, CO
Fri Apr 8, 2011
That depends on the situation. They can be negotiated with the contract or you can pay them yourself. The costs will depend on the property and closing company. A title company can give you specifics as to what they charge. I can give you general numbers. Contact me directly and I can help you further if you would like. I'll send you examples.- Brian with The Bramer Thomas Team
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Tim Moore, Agent, Kitty Hawk, NC
Fri Apr 8, 2011
Obtaining a loan has certain costs, you would be well advised to go to a bank and ask to speak to the loan officer and ask them to break down the costs for you - it's what they do. They can also tell you what you could afford to borrow. Speaking to a lender 1st is step #1.
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