Home-Buying Fees Myths You Should Know about before Entering the Real Estate Market  Copy

Home-Buying Fees Myths You Should Know about before Entering the Real Estate Market Copy

Before you even think about buying a home for sale in Northville, Michigan, why not have a look at your financials. Most people believe that the mortgage loan they will apply for will cover all the costs but there are few fees that you will have to pay out of your own pocket. For this reason, you need to have enough savings, so that you can cover the service charges and the real estate agent’s fees.

We like to call these extra costs as fee myths, which buyers think are not real. So, what is the first payment that you need to have on hand to make an offer?

The down payment!

Here’s some good news: you don’t have to pay a 20% down payment when buying a home for sale in Northville, Michigan. Most lenders ask for a 3.5% down payment that is if you have a clean credit card statement. If your credit score is below 600, then be prepared to pay a minimum of 10% down payment.

Following are the fees explained briefly in order:

1.     Appraisal Fee

The appraisal fee is the assurance which the lender needs before giving you the loan. It’s insurance against the proof that the loan amount you are asking for matches the house’s value. This fee costs somewhere between from $200 to $425.

2.     Home Inspection Fee

The most important thing to keep in mind is that never let go of a home inspection in return for an incentive. The few dollars you will be saving now will cost you thousands in the future. From assessing leaks and molds to plumbing problems, the HVAC system, roof and gutter, everything comes under this. Do not send an offer until you have the home inspection report in your hand. This fee costs somewhere between from $300 to $500.

3.     Application Fee

The application fee is the fee the real estate agent needs to run your credentials for the credit report. It also involves a few other fees, which is why it is important to ask your real estate agent for a final cost and its breakdown. This fee costs somewhere between from $75 to $300.

4.     Lender’s Origination Fee

The amount charged on the loan is known as the lender’s organization fees. It includes charges for underwriting the loan, funding the loan and loan application. This fee is usually 1.5% of the loan.

5.     Titles Services

A title search allows you to make sure that the home for sale in Northville, Michigan you are looking to purchase is not owned by someone else. Through this process, you can make sure that you are not being scammed. This fee costs somewhere between from $150 to $400.

6.     Survey Costs

Want to know about the house’s major features and dimensions then you need to pay fees that’s somewhere between $150 to $400.

7.     Tax Service Fee

Taxation fee cost is $50 and is paid to make sure that the tax payment documents are in order.

8.     Private Mortgage Insurance

Buyers, who are lucky enough to pay a 3.5% down payment, are subject to pay private mortgage insurance, which can be from 0.3% to 1.5% of the loan. This is an assurity that if you fail to pay back the loan and your house forecloses, the lender will be safe.

So, there you go… home-buying fees that up until now you considered a myth. Before placing an offer on the home for sale in Northville, Michigan, visit Homes2MoveYou. Get in touch with me 248-790-5594 and get the house appraised from experts.

 

Home-Buying Fees Myths You Should Know about before Entering the Real Estate Market

Home-Buying Fees Myths You Should Know about before Entering the Real Estate Market

Before you even think about buying a home for sale in Northville, Michigan, why not have a look at your financials. Most people believe that the mortgage loan they will apply for will cover all the costs but there are few fees that you will have to pay out of your own pocket. For this reason, you need to have enough savings, so that you can cover the service charges and the real estate agent’s fees.

We like to call these extra costs as fee myths, which buyers think are not real. So, what is the first payment that you need to have on hand to make an offer?

The down payment!

Here’s some good news: you don’t have to pay a 20% down payment when buying a home for sale in Northville, Michigan. Most lenders ask for a 3.5% down payment that is if you have a clean credit card statement. If your credit score is below 600, then be prepared to pay a minimum of 10% down payment.

Following are the fees explained briefly in order:

1.     Appraisal Fee

The appraisal fee is the assurance which the lender needs before giving you the loan. It’s insurance against the proof that the loan amount you are asking for matches the house’s value. This fee costs somewhere between from $200 to $425.

2.     Home Inspection Fee

The most important thing to keep in mind is that never let go of a home inspection in return for an incentive. The few dollars you will be saving now will cost you thousands in the future. From assessing leaks and molds to plumbing problems, the HVAC system, roof and gutter, everything comes under this. Do not send an offer until you have the home inspection report in your hand. This fee costs somewhere between from $300 to $500.

3.     Application Fee

The application fee is the fee the real estate agent needs to run your credentials for the credit report. It also involves a few other fees, which is why it is important to ask your real estate agent for a final cost and its breakdown. This fee costs somewhere between from $75 to $300.

4.     Lender’s Origination Fee

The amount charged on the loan is known as the lender’s organization fees. It includes charges for underwriting the loan, funding the loan and loan application. This fee is usually 1.5% of the loan.

5.     Titles Services

A title search allows you to make sure that the home for sale in Northville, Michigan you are looking to purchase is not owned by someone else. Through this process, you can make sure that you are not being scammed. This fee costs somewhere between from $150 to $400.

6.     Survey Costs

Want to know about the house’s major features and dimensions then you need to pay fees that’s somewhere between $150 to $400.

7.     Tax Service Fee

Taxation fee cost is $50 and is paid to make sure that the tax payment documents are in order.

8.     Private Mortgage Insurance

Buyers, who are lucky enough to pay a 3.5% down payment, are subject to pay private mortgage insurance, which can be from 0.3% to 1.5% of the loan. This is an assurity that if you fail to pay back the loan and your house forecloses, the lender will be safe.

So, there you go… home-buying fees that up until now you considered a myth. Before placing an offer on the home for sale in Northville, Michigan, visit Homes2MoveYou. Get in touch with me 248-790-5594 and get the house appraised from experts.

 

Putting a New Oakland County Home Inspection Checklist Together

Putting a New Oakland County Home Inspection Checklist Together

Putting a New Oakland County Home Inspection Checklist Together

Finding a good house and then a good deal on it  in Oakland County can be one of the most difficult things you’ll ever do. You need to search for a good neighborhood, a good house, a good deal, a good deal on financing it – there are anyPutting a New Oakland County Home Inspection Checklist Together number of tough decisions that you need to make it a short period of time. Most home buyers think that once the whole deal is signed and done with, there’s pretty much nothing left do other than to wait until closing day when they can celebrate and make plans to move into the new place. They’re just forgetting one little thing though – the final walk-through where they go through everything with new home inspection checklist in hand. Most contracts give you 72 hours to do your final walk-through, but I suggest doing it on the way to the closing table as alot can happen within 72 or 24 hours.

No, the new home inspection checklist isn’t about walking through your nice new home and planning on what color the curtains will be. It’s your chance to make sure that everything is as specified in the contract – that there’s no bait and switch anywhere.

Be serious about your new home inspection checklist and leave nothing to chance, and you can be sure that you get a house where everything works as promised. Just shrug your shoulders and tell yourself that everything’s probably as it should be, and you’ll find how well Murphy’s Law applies to you.

Start with the easiest things to check in the home– the appliances, and the home security system and so on. You know how these are supposed to work – the washing machine, the refrigerator and dishwasher, all the buttons on the keypad and all the remote controls.

Once you’ve satisfied yourself with these, try if you will, turn your attention to the plumbing. Turn on every water outlet everywhere, try to keep an eye open for any drips, any drops in water pressure and so on. Try to see if there are any wet spots in the walls where the plumbing runs – to see if there’s a possible leak. Turn the heating or air-conditioning on to see how well it drops the temperature of the room.

There is plumbing outside that you need to check as well. And that should go on your new home inspection checklist as well. Make sure that the garden irrigation system works properly.

The first time you saw your home, you probably asked the the first owner to make a few upgrades or repairs before you closed. Is there is any kind of repair that you requested that seems to have been done not entirely to your satisfaction? You must not be shy about asking and insisting that everything be done to your satisfaction.

It may feel like you are a stickler to have to ask about cleanliness, but it really is your right to ask the old owner to leave the house in good shape. And that includes the insides of all the appliances, the bathrooms and everything.

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A Successful First-Home Purchase in Oakland County MI

A Successful First-Home Purchase in Oakland County MI

Think You’re Ready To Make A Successful First-Home Purchase in Oakland County MI? 

It’s very exciting — and perhaps a bit overwhelming — given the expense, time and the number of steps it takes to make a successful first-home purchase in Oakland County MI today. You’ll certainly face many decisions along the way, and there’s plenty to doA Successful First-Home Purchase in Oakland County MI before you achieve your goal of your beautiful first home in Oakland County MI. Relax! It may take a few weeks to get it all together, but buying your first home in Oakland County doesn’t have to be a difficult process if you take it step by step — and have me along as your guide.

Here’s an easy-to-follow summary of the process you’ll go through in buying your first home in Oakland County Mi. Keep it handy as you proceed, and be sure to ask me any questions you have along the way.

  1. Select An Experienced Oakland County Mi Real Estate Professional As Your Buyer’s Agent
    A buyer’s agent is a real estate professional that is contracted to look out for the interests of the buyer rather than the seller. Signing me as your buyer’s representative means I can not only help you find your first home, but I can help negotiate price and contract terms on your behalf and provide information about a home, the sellers, and even previous offers and counteroffers, among other services. In most situations, buyer’s agents are paid from the sales commissions offered by sellers.
  2. Check Your Credit 
    Be sure to check your credit before applying for a mortgage. You’ll want to ensure all the information in your report is accurate — and correct any information that isn’t — to get the credit score you’ll need to qualify for a mortgage at the best interest rates available today. -By law, credit reporting agencies must provide you with a free copy of your report once every year — if you ask for it. To request reports from the three major credit reporting agencies — Equifax, Experian and TransUnion:

    • By phone, call toll free (877) 322-8228.
    • Online, visit www.AnnualCreditReport.com.
    • By mail, write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

    TIP: Credit reports do not include your credit score. Although you can obtain a free copy of each credit report annually, finding out about your credit score will cost you a few dollars.

  3. Investigate Mortgage Programs
    There are lots of mortgage options available, all with different down-payment requirements, interest rates, terms and conditions. I will be happy to help you sort through your choices to find the best fit based on your financial situation and goals.
  4. Interview Reputable Lenders
    Once you’ve decided on the loan options you’re considering, contact several lenders in Oakland County Mi to find out what they can do for you. You’ll want to know about their interest rates, loan costs, terms, etc. I will be happy to provide you with a list of lenders who have helped our clients in the past.
  5. Get Pre-Approved For A Loan, Not Just A Pre-Approval Letter
    Pre-approval means the lender has reviewed your income/debt ratio, assets and credit profile and determined the amount of money they would be willing to lend you providing various conditions are satisfied by the particular home you decide to purchase — such as a supporting appraisal, clear title, etc.Here’s how loan pre-approval can help you:

    • Knowing exactly how much money you can qualify to borrow will ensure you don’t waste your time looking at homes you can’t afford.
    • Based on your loan pre-approval, you’ll know in advance what contract terms you’ll want to negotiate with sellers — for example, seller-paid points, closing costs, inspections, etc.
    • If you find a particularly good deal on a home, you’ll be able to jump on it, without worrying about whether you’ll get the financing you need.
    • Your pre-approved loan gives sellers confidence that their contract with you is more likely to go to settlement/closing –and get there more quickly — than would contracts from competing buyers who have yet to secure financing approval.
  6. Develop A “Needs And Wants” List
    Include the type of home — single-family, townhome, condo, etc. — number of rooms, size, location in Oakland County Mi and any other amenities that are important to you in your first home. Be sure to distinguish between minimum requirements (“needs”) and items you could do without (“wants”), if need be. Remember, you may not be able to afford your dream home as your first home, but making a smart choice will allow you to live in it comfortably and sell it when you’re ready.
  7. Search Available Properties
    I can pull all the homes on the multiple listing service (MLS) in Oakland County MI that match your needs and budget. Of course, you can view many properties online to sort out those that look like what you hope to find.
  8. Tour Homes
    This is where the real home shopping takes place — in person with your agent. Your personal visits to homes in Oakland County MI gives you a clear sense of their location, condition, amenities and overall “feeling,” none of which comes across accurately online. Be sure to drive and walk the neighborhood surrounding your top choices.
  9. Pare Down Your Choices Using Your “Needs And Wants” List
    It’s useful to go back to your original wish list to help you focus on selecting that one property in Oakland County MI that’s just the right combination of amenities to be your first home.
  10. Write A Purchase Offer For The Home Of Your Choice
    I will help you design a purchase offer to get you the best deal on the home you want in Oakland County Mi- and consider contingencies to protect your interests. I will submit your offer with your deposit (earnest money) to the seller or seller’s agent.-An earnest money deposit shows the seller that a buyer is serious about purchasing a property. When the transaction is finalized, the funds are put toward the buyer’s down payment. If the deal falls through, the buyer may not be able to reclaim the deposit.
  11. Negotiate The Contract
    Faced with an offer, sellers have several options — rejecting it or letting it lapse, accepting it as is, or making a counteroffer. Most contracts go through several rounds of back-and-forth negotiations (counteroffers) before both parties agree to the sales contract. I will put my many years of proven negotiating experience to work for you, so you’ll feel like a winner when you sign the bottom line of the contract to buy your first home in Oakland County MI.
  12. Submit Your Contract To Your Lender
    Your lender will need some more information and documents than were required for loan pre-approval. Staying in touch with your loan officer and responding to requests quickly will help keep your financing on track and on time.
  13.  Purchase A Homeowner’s Insurance Policy
    Your lender will require proof that you’ve purchased homeowners insurance (also “hazard insurance”) — shop various insurers to find the best deal.
  14. Schedule And Attend Home Inspections
    Hiring a professional home inspector is a smart move in Oakland County MI, especially when buying your first home. The inspector will provide you with a full report on the condition of the home’s systems, appliances and structure — and even more information if you’re available when the inspection is conducted (old clothes are recommended). You may also want to order specialty inspections to check for problems such as pests, radon gas, mold, etc.
  15. Negotiate Defects Found During The Home Inspection
    With a home-inspection contingency in your contract, you’ll be able to back away from the deal if the inspector finds problems the seller is unwilling to fix and you’re unwilling to buy. Ideally, though, you’ll negotiate with the seller to resolve problems so your home purchase can go forward.
  16. Prepare For The Move To Oakland County MI
    At this stage, you’ll be wrapping up things at your old home and getting ready to move into your new one — disconnecting utilities and services, setting up accounts for your new home, getting rid of items you’d rather not move, hiring movers or lining up boxes and friends, etc.
  17. Conduct A Final Walk-Through Of The Home
    Shortly before closing/settlement, you’ll conduct a walk-through inspection of the home to ensure that the property’s condition hasn’t changed and meets your contract’s requirements.
  18. Attend Closing/Settlement
    With your agent’s help, you’ll check all final documents for accuracy, sign the necessary documents, pay the buyer-assigned closing costs and pick up the keys to your first home. Just one step left — move in and celebrate!

 

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