First Time Home Buyers

First-Time Home Buyers

First time home buyers may think that a downpayment is the only cost of buying a home upfront. However, they soon realize that their downpayment is only one of the many costs that require cash or money upfront. So, how much should you expect to pay before closing on your new home will depend on the type of mortgage you choose.

You will probably make a downpayment anywhere between zero and thirty percent of the purchase price of your home. This range is very large, but the good news are that you get to choose what size of the downpayment you’ll make in the very early stages of house hunting.You can talk with your mortgage officer to find out what mortgage type is best for you. You can even choose zero moving costs with various types of home loan products and its prevailing interst rates; and this decision will largely be based on how much money you can put towards a downpayment.

Your downpayment is usually the largest expense in buying a home, but remember that it is not the only cost. There are several other expenses that can add up to be quite a bit of money. Usually these costs total anywhere from three to eight percent of the purchase price of your home.

When buying a home, you should expect to pay for certain items and services throughout the home buying process. These expected costs are called buyer costs, or buyer expenses. Some typical buyer costs include the agent’s fee if necessary, the lawyer’s fee, search fee, registration fee, stamping fee, transfer fee… just to name a few and not forgetting your home improvement cost or renovation cost to your new home.

Since no two real estate transactions are the same, first time home buyers should get your buyer’s

expenses confirmed before signing a contract. It’s true that there are typical buyer costs and seller costs, but it’s a good idea to get these in writing so that you know how much you’ll need to spend during the home buying process.