other costs in buying a home? besides mortgage?

Asked by baarbjones95, Los Altos, CA Thu May 19, 2011

if the mortgage calc says i can afford a 1 mln house, what other costs are on top of that?
closing costs or lender fees,etc?? does that mean i can afford less than a million dollar home?

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Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Fri May 20, 2011
How much can you AFFORD depends on what your budget it like, taking into consideration net income, debt payments, retirement contributions, utilities, food, gas, insurances, entertainment, etc. A mortgage lender will very rarely be able to tell you what you can afford unless they are also a budgeting planner.

What a mortgage lender can tell you is what you can QUALIFY for. Online mortgage calculators, bless their little digital hearts, only can give people a rough estimate of what one might qualify for. Their output is only as good as the information it asks for and the accuracy of the data that the user inputs. You use 5 different calculators, you will probably get 5 different answers, none of which will really matter since a mortgage lender is who you will need to talk to.

In theory, if you can qualify for X, then you can qualify for an amount less than X, but not necessarily for an amount more than X.
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Stephanie Le…, Agent, Miami Lakes, FL
Thu May 19, 2011
How much you can afford depends on your debt -to-income.

To know how much you can afford use the link below.

For closing cost see my other answer already posted.
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Stephanie Le…, Agent, Miami Lakes, FL
Thu May 19, 2011
Closing cost vary based on the purchase price. Below is some additional information about typical fees charged at closing.

State and County fees:
Documentary Stamps/State Tax on the Deed (Sales Price)
Intangible Tax/County Tax on the mortgage
Recording charges for the deed

Owner's mortgage policy of Title Insurance:
Up to 100,000 $5.75 per 1,000

Recording Fee: $45 estimate
Wire and Courier Fees: $55 estimate
Endorsement Fee: $175 estimate
Title Closing Fee: $650 estimate
Title Document Prep Fee: $150 estimate
Survey: $350 estimate
Home inspection: $350 average price
Lender fees: Varies by lender
Upfront PMI

You should request from your lender a GFE (good faith estimate) this will give you an idea of home much you will need to actually buy a home.

When buying a home you will usually need about 8% of the purchase price to take ownership.
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Shanna Rogers, Agent, Murrieta, CA
Thu May 19, 2011
Hi baarbjones95,

The best way to figure out what you can afford is to talk to a lender. They can calculate all that for you. They will take into account Homeowner's Insurance, Property Taxes, Principle and Interest mortgage payments, closing costs, lender fees, PMI (private mortgage insurance) - if required, etc.

Shanna Rogers
SR Realty
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Ilya Zobanov, Agent, St Petersburg, FL
Thu May 19, 2011
Depends what you are entering into the calculator. The lender (based on your income, collateral, credit history and other factors) is the one who should tell you what payment you can afford. (even though they didn't do a great job back in 2005-2006)
You need to take into account the home owner's insurance payment and property taxes (if any in your state). Based on the loan type and size of the down payment you may be required to pay PMI (mortgage insurance) which will add onto your payment.
And of course there are closing fees, lender's and title agency's. All lender are different, you need to ask your lender for a GFE. That should give you a good picture of your closing fees.
Good luck!
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