Closing costs are part of the upfront cash you will need when you purchase your new home. These costs are for the mortgage lender and title company for the services related to your loan. Your closing costs will be greatly reduced if you are paying cash since there is no mortgage lender services to pay.

How Much Do I Have To Pay and Why?

Many buyers are not aware of the additional cost of closing or have an idea how much it is. (Another reason to use a good REALTOR®️). These costs cover, among other things, appraisal, title search, loan servicing fees, title searches and escrow for property taxes. These costs are only paid at closing so if the home purchase does not close, you are not responsible for the work already put in by the title company and the lender.

Closing costs can range from 3% to 6% depending on the lender, title company, type of loan and location of home. This means on a $200,000 mortgage, you should expect to pay around $6,000 to $12,000 in closing costs. The seller DOES have closing costs as well. Since there is no lender on their side, the seller closing costs are usually around 1%-2%.

There are some ways to get assistance with closing costs. There are some programs that assist, for example the Florida Hometown Heros Housing Program is allowing qualified home purchasers to receive up to 5% for their closing costs.  Click here to see if you qualify. Hometown Hero Qualification. Also, the buyer can ask the seller to contribute to their closing costs. There are, however, limits based on the type of loan and other factors.

According to Realty Times:

                “In 2019, the average paid for closing costs in the U.S. was $5,749, including taxes.

The highest closing costs on average are in parts of the Northeast, including Washington D.C., Delaware, New York, Maryland, and Pennsylvania.

Washington State also has some of the highest closing costs in the nation.

States with the lowest average closing costs include Indiana, Montana, South Dakota, Iowa, and Kentucky.”

 

What Are The Fees

On your itemized breakdown you will get from your lender and title company, you may see some of these fees:

• Loan Application Fee
• Attorney Fee
• Escrow for property insurance and/or Home Owners Insurance
• Mortgage Insurance
• HOA transfer and escrow fees
• Title Insurance
• Administration fees

 

It is important to remember you can shop around for your lender. The closing fees vary from lender to lender so make sure you are asking the right questions. In Florida, the seller typically chooses the closing title company so you may not have nay influence over that. However, by the seller choosing the title company, they will pay a bigger cost on title insurance.  Not all sellers are willing to provide concessions, but if it can get negotiated at the time of contract it could save you thousands! 💰💰💰

 

Lastly, and I think most importantly, find a good REALTOR®️ that is knowledgeable about all aspects of the transaction and is trustworthy to help you save as much money as possible when you find your dream home🏡

 

Contact me with any questions:

Robert Sullivan | SL3413781 FL

robert.sullivan@floridamoves.com

http://www.robertsullivanrealestate.com

(407) 221-2276 (Direct) |  (407) 333-8088 (Office)

Orlando North/Heathrow

1120 Townpark Ave Ste 1042 Lake Mary, FL 32746

Coldwell Banker Real Estate LLC

It’s certainly worth the wait and effort, but saving up for a down payment on a house can feel like it’ll take forever!

If only there were a fast-forward button… (Or a surefire way to win the lottery!)

…but there’s not. It simply takes time and patience.

To help you muster up the patience and make the time pass more quickly, here are 9 ideas to help you get through the time it takes to save up for your new home:

1. Make a (realistic) timeline

Figure out how much you can save per month, determine how long it’ll take you to get to your down payment goal, then work your plan.

2. Try to look at the big picture

When you take a step back and look at your goals in terms of years instead of days, you start to understand that good things take time.

3. Block all the real estate listing websites on your browser

Don’t drive yourself crazy while you’re saving. Block out the triggers and distractions and keep your eyes on the prize.

4. Keep track of your progress

If you check your progress every month or every few weeks, you’ll see that you’re actually making progress and getting closer to your goals.

5. Build a piece of furniture for your future home

There’s nothing better than working with your hands to clear your mind. And who knows, you just might realize you’ve got a knack for it.

6. Get a side hustle

Not only can finding a side gig help you reach your savings goals faster, it can also keep you busy and your mind occupied while you work toward your goals.

7. Meditate

If you can learn to clear your mind, you’ll learn patience, feel better, and avoid stress as you save.

8. Cancel your HGTV cable channel subscription

Seeing the joys of homeownership crammed into beautiful thirty minute segments isn’t helpful to those trying to be patient, so make sure you cut the cord.

9. Remember the goal

Keep going with your goal in mind, and whenever the going gets tough, remember why you’re being patient. If you can tie your efforts to the outcome, then the journey won’t seem quite as bad.