Costs associated with buying a home?

4 Replies

So, having never been a homeowner before, I'm wondering aside from the down payment, what are the other costs accrued in the home buying process? I believe I read somewhere that you should usually have at least a grand or two set aside for all the closing costs, how accurate is this?

Originally posted by @Stephen Spradley :

So, having never been a homeowner before, I'm wondering aside from the down payment, what are the other costs accrued in the home buying process? I believe I read somewhere that you should usually have at least a grand or two set aside for all the closing costs, how accurate is this?

 Hi Stephen,

That's a market-specific question, but "a grand or two" is unlikely to be sufficient.

Local to me in Berkeley for example, there is a transfer tax of $15 per $1k purchase price. So on a normal $800k purchase, boom there's $12k in closing costs right there. The seller may agree to cover half, so that's $6k left for you.

A lender in your area will be able to talk about location-specific strategies to deal with this.

Chris Mason, Lender in CA (#1220177) and California (#1220177)
415-846-9211

You will also need money for a home inspection, usually they are around $300 to $500. Also, you will need to buy insurance.  If the home is in a flood area that will be separate insurance.

There is quite a few depending on the situation. Depending on your loan and terms, for example the VA home loan, you may need to bring the house up to code for the lender to lend money and you or seller may need to pay that.

@Stephen Spradley , a grand or two, more like an arm or two ;)

This article may not be the exact same scenario as yours, but it still has a lot of really good info on the subject. Hope it helps, good luck!

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