7 Common Closing Costs to Consider When Purchasing a Home

Purchasing a home is an expensive proposition, but for many buyers, the realization that a host of closing costs need to be paid before the sale can go through is often a concern when it comes to ensuring there is enough money set aside to go through with the transaction.

In simple terms, closing costs are the fees associated with the acquisition of one’s new home that have nothing to do with the final sale price. These costs are in addition to the actual purchase price and include everything from legal fees to land transfer taxes to moving expenses.

shutterstock_288813515

To ensure no financial surprises pop up when it’s time to buy your home, here are some of the most common closing costs that need to be considered.

Legal Fees
A real estate lawyer will be needed to assist you in drafting the deed, preparing the mortgage and conducting various searches related to the property. While the cost of a lawyer varies, you can expect to pay at least $1,000 for their services.

Title Insurance
Almost all lenders require that a homebuyer purchase title insurance to protect against losses in the event of a property/ownership dispute. Title insurance is basically an insurance policy that protects the homeowners from problems related to the title to their home, such as title fraud, undischarged liens, zoning issues and survey problems. Homebuyers can expect to pay between $150 – $400 for title insurance at closing.

Interest Adjustments
Unless you are purchasing a home on the first of the month, odds are your mortgage payment won’t be due until the following month. However, you’ll still be required to pay interest on your mortgage up to the first theoretical payment date at closing. It’s important to ask your mortgage lender how your IAD (interest adjustment date) is calculated so you’re prepared for this closing cost.

Prepaid Utilities Adjustments
A buyer must also reimburse the previous owner for any utility payments they may have already paid for the upcoming year. While this means you won’t have to pay for these utilities yourself for a while, it’ll add to the closing cost pile and can run hundreds of dollars.

Property Survey
A land or property survey is a legal written and or mapped description of the location and dimensions of the land that you’re acquiring. This is another requirement of a lender and is necessary for any transfer of ownership. A property survey will reflect all dimensions of the house and include anything that was added since the house was originally built, such as a new addition, deck, fence or pool. It can also point out any encroachments, such as a neighbor’s fence. This will generally run somewhere between $500 and $1,000.

Down Payment
The most important closing cost of all, the down payment can be anything you’ve negotiated with the seller and your mortgage lender, but typically falls around 20% of the purchase price. If you’re selling a home as well, and the deal hasn’t been finalized, you may need to acquire bridge financing. This will cover the cost of the down payment for a short period of time, with only interest paid at closing. Otherwise, prepare to buy your new home with whatever money you’ve been saving.

For more information about closing costs, contact your local office today.

 

AskHomesale.com provides real estate advice and information for home buyers, home sellers, and homeowners alike. Askhomesale.com is part of the Homesale Realty Family. The Homesale Family of Companies is the leading real estate company serving the Baltimore, Maryland, South Central and Southeastern PA real estate markets.  Homesale Realty has more than 27 offices with over 1,200 REALTORS®. Homesale Realty’s footprint includes Maryland real estate offices in Baltimore City, Federal Hill, Fells Point, Westminster, and Timonium. Pennsylvania real estate offices include YorkLancasterWyomissingChambersburgGettysburgHarrisburg, and Schuylkill Haven.

Tips for Home Buyers  |  Tips for Home Sellers | Tips for Homeowners

7 Common Closing Costs to Consider When Purchasing a Home

Reel in the Buyers

Make the most of the season by trying these fresh updates to entice prospective buyers.

shutterstock_243991798

Spring Cleaning
During the transition from winter to spring it is natural to want to clean. A glistening interior will impress buyers and allow them to envision living in your house.

Shape Up the Yard
Selling in the spring means you need to whip your yard into shape as soon as possible. Get rid of winter yard debris and use frost-resistant plants that won’t be affected during some of the chillier nights. Maintaining a clean and colorful yard will add curb-appeal to your home.

Put away your winter clothes
Keeping winter clothes in your closet will take up a great deal of space, which can make your closet area look smaller. So put your winter clothes in storage and impress buyers with all the open space.

Brighten up the entryway
It is time to swap out your winter welcome mat to a clean, appealing one. Adding a few decorative items to your front entry/porch will help set the tone for upcoming showings.

Bring the outdoor scents inside
Spring is an extremely aromatic season, so bring the clean flowery smells inside your home. Studies have shown that mood is affected by scent, so adding candles and freshly cut flowers into your home can positively change the overall feeling inside your home.

 

AskHomesale.com provides real estate advice and information for home buyers, home sellers, and homeowners alike. Askhomesale.com is part of the Homesale Realty Family. The Homesale Family of Companies is the leading real estate company serving the Baltimore, Maryland, South Central and Southeastern PA real estate markets.  Homesale Realty has more than 27 offices with over 1,200 REALTORS®. Homesale Realty’s footprint includes Maryland real estate offices in Baltimore City, Federal Hill, Fells Point, Westminster, and Timonium. Pennsylvania real estate offices include YorkLancasterWyomissingChambersburgGettysburgHarrisburg, and Schuylkill Haven.

Tips for Home Buyers  |  Tips for Home Sellers | Tips for Homeowners

Reel in the Buyers

5 REMINDERS FOR HOMEOWNERS

March IOV Flier

AskHomesale.com provides real estate advise and information for home buyers, home sellers, and homeowners alike. Askhomesale.com is part of the Homesale Realty Family. The Homesale Family of Companies is the leading real estate company serving the Baltimore, Maryland, South Central and Southeastern PA real estate markets.  Homesale Realty has more than 27 offices with over 1,000 REALTORS®. Homesale Realty’s footprint includes Maryland real estate offices in Baltimore City, Federal Hill, Fells Point, Westminster, and Timonium.  Pennsylvania real estate offices include York, LancasterWyomissingChambersburgGettysburgHarrisburg, and Schuylkill Haven.

Tips for Home Buyers  |  Tips for Home Sellers | Tips for Homeowners

5 REMINDERS FOR HOMEOWNERS

Repairing Your Credit Score

If you are applying for a mortgage, loan, or credit card, your credit score will play a key part in determining if you will be accepted or not.

cashnetusa-credit-repair-infographic

[Info-graphic provided by Cashnetusa.com]

Find out more about a mortgage quote from one of many programs so that your mortgage is custimized to fit your needs. Our knowledgeable mortgage consultants will work with you every step of the way to navigate today’s mortgage environment and get you to the closing table.

Maryland Mortgage Lenders

Pennsylvania Mortgage Lenders

Repairing Your Credit Score

FLOOR WARS

If you’re wavering between installing new wood floors or new carpeting in your home, it may seem like a simple decision based on cost, but that is not the case. When choosing flooring for residential homes, it is important to consider design, comfort, price and sustainability. Keep in mind that whichever new flooring you choose will look great when it’s first installed, but even a few weeks of use can require enough sweeping, vacuuming and polishing to make you reconsider your choice.

shutterstock_132676046

Here are some things to consider when choosing flooring: wood versus carpet:

Advantages of Carpet:

  • Cushions slips and falls
  • Reduces noise throughout the house
  • Natural insulator – providing warmth during the winter season
  • Holds onto allergens and keeps them out of the air (vacuuming frequently will remove them)
  • Should last about 10 years
  • Faster and cheaper to install

Disadvantages of Carpet: 

  • Collects dust very easily
  • Needs to be professionally cleaned with hot water extractor (1-2x a year)
  • First is more easily tracked onto carpets
  • Shows walking patterns where foot traffic is heaviest
  • Liquids can seep into the carpet quickly
  • Might be outdated

Advantages of Hardwood:

  • Does not collect as much dirt and allergens
  • Can be repaired if damaged – does not have to be entirely replaced
  • Simple and quick to clean
  • Spilled liquid is easy to wipe up
  • Can be easily professionally repaired
  • Resale value due to popularity
  • Warranty on the “finish” typically ranges from 25-30 years
  • Sustainable, renewable and natural material

Disadvantages of Hardwood:

  • Can be dented – may have to be completely replace board(s) if something heavy is dropped onto it
  • Easily scratched due to moving heavy object, furniture and pet nails
  • Needs to be cleaned more often than carpet because dust/spills/crumbs are more visible

 

Flooring is a big decision, some homeowners prefer the plushness of carpet beneath their feet, while others believe hardwood adds a touch of elegance to their home and that it remains that “new” look for decades. Although in the end, the decision is up to you.

 

AskHomesale.com provides real estate advise and information for home buyers, home sellers, and homeowners alike. Askhomesale.com is part of the Homesale Realty Family. The Homesale Family of Companies is the leading real estate company serving the Baltimore, Maryland, South Central and Southeastern PA real estate markets.  Homesale Realty has more than 25 offices with over 1,000 REALTORS®. Homesale Realty’s footprint includes Maryland real estate offices in Baltimore City, Federal Hill, Fells Point, Westminster, and Timonium.  Pennsylvania real estate offices include YorkLancasterWyomissingChambersburgGettysburgHarrisburg, and Schuylkill Haven.

Tips for Home Buyers  |  Tips for Home Sellers | Tips for Homeowners

FLOOR WARS

Being a Good Neighbor

Ask yourself, ”Am I a good neighbor”?

finalpostGood neighbors are important.  Living in a neighborhood where you feel safe and connected can impact your level of happiness and even reduce stress.  You may not be able to change your neighborhood, but you can certainly change the experience you have in your neighborhood by getting out and getting involved.

Here are a few qualities of a good neighbor:

Good neighbors are respectful
Always be conscientious about noises that may disturb your neighbors, such as music, loud talking, barking dogs.  End parties at a reasonable hour, while you are at it, invite your neighbors.  Always return anything you borrow in the same condition, in a timely manner, and express your gratitude when you do so.  Make time to smile and say hello.  Never forget, while neighbors may live close, they are also respectful of each other’s privacy.

Good neighbors are proud
Be considerate of those around you.  Take pride in maintaining your home so that it is neat and attractive.  Mow your lawn regularly and keep your landscape trimmed and neat.  Coming home to a beautiful house and neighborhood is rewarding.

Good neighbors are helpful
Offer to collect mail, water plants, or watch pets while a neighbor is away on a trip.  When snow falls, help elderly neighbors by shoveling their driveway or sidewalks.  Prepare a meal when a neighbor is under the weather or run errands while their car is in the repair shop.  You never know when you will need one of them to return the favor for you.

Good neighbors are supportive
Organizing neighborhood parties, yard sales, or other functions is a good way to get to know each other better and a great way to build a stronger community.  Neighbors who know each other personally are more likely to look out for and help each other.  Neighborhood Watch groups are another way to help and support your neighbors.  They deter crime and violence, making your neighborhood a safer, happier place to live.

Good neighbors are social
Get to know your neighbors.  Welcome new neighbors with a note or a friendly chat.  Invite neighbors over for coffee to visit and share good news.  Learn from your neighbors who have different cultural backgrounds than you.  Everyone gets busy; it only takes a little bit of time to organize an annual holiday party and socialize with all your neighbors.

Getting to know the people around you takes only mere moments out of your day, but can provide a lifetime of pride in your home and the neighborhood.  It is nice knowing you can depend on those around you and they can depend on you.

“When strangers start acting like neighbors…communities are reinvigorated.” – Ralph Nader

Click here for some tips on meeting your neighbors.

Looking for a new home? Prudential Homesale’s new real estate search can help you find what you are looking for.

Being a Good Neighbor

Autumn Home Checklist

 Fall made its official arrival on Sunday, September 22nd. Although some days are still sunny and a bit warmer than usual,
don’t be fooled! Crisp, colder days are winter days lurking around the corner; NOW is the perfect time to prepare your
home for them!

Here is a checklist to help you get started….

Oct 2013 IOV - Ecard

A little time spent now can save you the hassle of dealing with bigger issues later! With falling leaves
and dwindling daylight hours. Take advantage of this final opportunity to get these task completed before
winter settles in!

Baltimore Homes for Sale  | Towson Homes for Sale | Lancaster Homes for Sale | York Homes for Sale

Autumn Home Checklist