You Want to Buy a House… How Much Will it Really Cost?

www.carolsawdeyteam.com  You’ve decided you are ready to buy a house.  You are pre-approved and have an agent. You go on the internet and find a couple of homes in the area you want that are interesting.  You go to an open house and fall in love with it.  It’s at the top end of your price range but you figure that’s okay – price is price.

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But it’s not.  All too often we find out that other agents or lenders have forgotten to explain the true cost of buying a house.  Cost and Price are two very different things…

There are other costs that go into buying a house other than the sales price.  Let’s look at some that you need to consider:

  • Closing costs – these consist of escrow, title, lender, appraisal and inspection fees that the buyer is normally responsible for.  Closing costs average in the range of 2.5% to 3.00% depending on the loan type and down payment you have.
  • If you buy at the high-end or slightly out of your target price range and end up with less than 20% down, you could have to pay mortgage insurance which can add anywhere from 0.5% to 1.0% of the entire loan amount onto your monthly payment.
  • The home you like is in a newer neighborhood where they had to build new parks and schools for the kids so you have what is called Mello Roos – an assessment over and above the regular property tax for the area.  These can bring your tax base from the normal 1.25% to close to 2.0%.

Make sure you work with an honest, ethical, educated Agent that is going to discuss all of this up front with you – before you set your target price range.  Just so you know – our level of care is based on no surprises.  If anything catches you off guard we take it personally.  Call Carol at 925-487-2354 so you can learn more about our level of care!

 

 

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About CarolSawdey

I'm a Broker/Realtor in the San Ramon Valley. A trusted advisor in the local community: We help people buy and sell homes. We counsel them thoroughly. We negotiate to their advantage. We keep their stress to a minimum. And we love what we do!
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