Fees When You Are Buying Your First Home
Fees when you are buying your first home
Deciding to buy your first home is an exciting life milestone, one that we often look forward to growing up. Not only will you now have the space that you want, but will be able to put whatever furniture your heart desires into your new home. While all this is exciting, the financial aspects of buying a home can appear to be daunting.
Getting approved for a loan is often the first recommended step. Being pre-approved will not only make you more appealing to the sellers, but will provide you with a budget range and an idea of what you can afford. Your realtor will not only be apple to put you in contact with a reputable lender but also be able to then take the findings and apply them to your home search.
There is no doubt that you have been saving for your initial down payment as you were preparing to buy a home. This initial down payment reduces what you owe over the next 15, 20, or 30 years depending on which mortgage loan type you choose. The general consensus is that you should have a down payment of at least 20% of your initial home price. If you have less than 20% you may have to pay PMI, or private mortgage insurance, an example of an unanticipated fee. However, often times there are strategies we can advise you on how to work around these types of fees.
Buying a home always has other fees that come up so save yourself the surprise and put some money aside for these costs. An example of something you do not want to skip out on is paying for a home inspection. Just because the home looks beautiful when you tour it does not mean that there are not potential heavy costs that you would be responsible for if you were to purchase the home. An example is needing a new roof, which could be thousands of dollars and you would likely not have known you would incur without your home inspection.
Working with the right real estate agent makes all the difference when buying your first, second or even third home. Find Thousand Oaks homes for sale and get to know our team on our website www.hareassociates.com.