Ever wonder what the actual costs are when buying a home? It is more than just a down payment. There is a whole laundry lists of fees, reports, and services that have to be paid in order for a home to close. Check out this list of closing costs, and if you have any questions, just let me know.

 

As an informed mortgage customer, you should make your mortgage banker walk you through each cost, and explain in detail what you are paying. The bottom line is that you don’t want to be surprised at the last moment. Imagine getting a call from your mortgage banker the day of your closing with a message that your closing costs are $1,200 more than you thought. And the only explanation is that the title company made a mistake. Chances are you may have to reschedule your closing to get the money together for the difference, or have your mortgage adjusted to have the amount rolled in.
To avoid a situation like this, it’s a good idea to know exactly what the costs and fees are, how they are calculated, and why you (or the seller) have to pay them. Here’s a breakdown of the most common closing costs and fees with a rough estimate of average cost:

• Appraisal (up to $450) – This is paid to the appraisal company to confirm the fair market value of the home.

• Credit Report (up to $30) – A Tri-merge credit report is pulled to get your credit history and score.  You cannot supply your consumer pulled report and the scores pulled form the internet from any place other than myfico.com are not real scores nor are they accurate.

• Closing Fee or Escrow Fee (generally calculated a $2.00 per thousand of purchase price plus $250) – This is paid to the title company, escrow company or attorney for conducting the closing. The title company or escrow oversees the closing as an independent party in your home purchase. Some states require a real estate attorney be present at every closing

• Title Company Title Search or Exam Fee (varies greatly) – This fee is paid to the title company for doing a thorough search of the property’s records. The title company researches the deed to your new home, ensuring that no one else has a claim to the property.

• Survey Fee (up to $400) – This fee goes to a survey company to verify all property lines and things like shared fences on the property.  This is not required in all states.

Read the rest of the article and find out what the other 18 items in a closing that you may be responsible for. Here is the article: http://www.zillow.com/wikipages/List-of-Closing-Costs-and-Fees/

I help buyers buying luxurys home along the Emerald Coast. There are a number of wonderful, luxury communities in the Destin and 30A areas. From such highly sought after Alys Beach and Seaside, to destination spots like Sandestin Resort and Watercolor Resort. There are a number of luxury golfing communities in Destin like renowned Kelly Plantation and Regatta Bay.

Where you choose to call home, I can help you find the perfect luxury home and community. Call me today at 850-867-9305.

In the meantime, enjoy the following article from FrontDoor.com

Top 10 Tips When Buying A Luxury Home

1. Learn the search process.

“Many luxury homes go unlisted to protect a seller’s privacy. These properties are often found through the Realtor’s personal connections as opposed to the MLS.” Virginia Cook, Virginia Cook Realtors, Dallas

“You may need to go to more online sources as not everything is on the large search engines.”Ronald Phipps, Phipps Realty, Warwick, R.I.

2. Go beyond the photos.

“Make sure you don’t dismiss properties based on their front elevation photos. Many large homes aren’t photogenic that way and you have to see them in person to appreciate. I recommend my clients do a search of the property and vicinity on Google Earth so you can see what’s around the home.” Ronald Phipps, Phipps Realty, Warwick, R.I.

3. Work with a local expert.

“It’s critical to have a good buyer agent who is familiar with the area you want to buy in. There’s a bit more control on access to high-end properties in terms of fewer open houses and more appointments have to be made to see them.” Elizabeth Blakeslee, Coldwell Banker Residential Brokerage, Washington, D.C.

4. Bank on your relationships.

“I strongly recommend you go to the bank you have a relationship with. They have your portfolio already. Also, know the difference between the pre-approval letter and the prequalification letter.”Nancy Suvarnamani, Century 21 SGR Inc., Chicago

5. Document everything.

“There is more scrutiny today in the high-end market. Financial documentation is critical. Anyone who is making a lot of money has a manager or an accountant and tries hard to shelter their money so it can be difficult to show the bank you have the income.” Steve Goddard, RE/MAX Beach Cities Realty, Manhattan Beach, Calif.

6. Hire smart, reliable advisers.

“A good Realtor won’t make the client’s decisions but will make suggestions. Pay attention to your financial planner and Realtor that you trust. They should agree on what you should be doing and if they don’t, arrange a meeting.” David Boyer, Jack Woodcock Team, Las Vegas

7. Don’t forget about title insurance.

“You need to get title insurance so you’ll be insured against any problems that were forgotten about. You want to make sure you have a chance to have a look at the exceptions page of the title insurance process before closing time.” Moe Veissi, Veissi & Associates, Miami

8. Look into the future.

“Make sure you know what building is planned around you. What happens if someone pushes the bar and builds another building even taller?”

“Know the timeline. You don’t want to tie your cash up for a long period of time if there are any kinds of construction delays.” Alexander Chaparro, @properties, Chicago

9. Know what to expect with cooperatives and condominiums.

“For co-ops and condos you want to be represented by an attorney who will research the building on its financial viability.” Klara Madlin, Klara Madlin Real Estate, New York City

10. There’s room to negotiate.

“It’s individual points, the view or remodeling that makes these properties one of a kind and makes them able to command a particular price. Have your agent research the comparable properties that have recently sold, getting closing prices, right before you make an offer.” Fanny Y. Chu, Prudential California Realty, San Francisco