Finding a home may not be as simple as you may think. A real estate transaction is a complex process that entails additional costs aside from the sales price. To be truly prepared for homeownership, you must have enough funds to cover these fees and more.
So aside from the down payment (usually 3.5% to 5% of the sales price), here are some of the basic expenses that you will surely encounter:
Loan/ Mortgage fees
Depending on the lender and the loan structure, you (as the homebuyer) may be charged with an application fee and private mortgage insurance.
Credit checks are done to secure a loan. Mortgage companies require a verified credit report which usually costs around $25.
Your lender or bank will charge an origination fee to create the loan and process your mortgage for closing. This is about 1% of the total cost of the loan and will be added to the monthly mortgage payments.
Some lenders also charge fees for document preparation and tax services, which may amount to less than $100.
An average of 1% to 2% of the total sales price, the earnest money is a good faith deposit which proves that the homebuyer is serious in purchasing the home.
Though optional, home inspections are recommended to ensure that the home is free from major structural defects, termite infestation, asbestos, or mold issues. Reliable home inspectors in Oklahoma usually charge less than $150 for their services, typically cheaper than in other states.
Based on the negotiations, the buyer may or may not be required to pay the title fees which include an insurance fee, title history, title policies, flood certificate, escrow fee, tax certificates, and document fees. In Oklahoma, the state recording fee (charged by county clerks for deeds and mortgages) starts at $13 for the first page and $2 for each succeeding page.
In Oklahoma, buyers pay the title representative or the real estate attorney who administers the closing a settlement fee that ranges between $450 to $500.
A property appraisal is needed to establish the fair market value of the home and for tax purposes. This may cost around $350 to $450.
In addition, a survey fee is also required to determine the exact legal boundaries of the property. The average service of a professional surveyor in Oklahoma is $250.
Your moving expenses may cost a thousand dollars or more depending on whether you are moving to a new city or to a new state, and the size of your haul. To get the best rates, research local movers or seek recommendations from family and friends.
Your new home, whether newly built or previously owned, will incur a few unexpected expenses in the first few years. This will likely include repairs and improvements which will be done to fit your living needs. Most homebuyers also tend to buy new sets of furniture and decors to add their personal touch. Appliances and fixtures which came with the home may also likely break down at some point.
A shift from the renter’s lifestyle to homeownership means that you are now solely responsible for the utility bills. It also means taking care of home maintenance, from the roof and gutters to the landscaping and more. Annual home maintenance may cost an average of 1% of the property value.
If you happen to live within a gated community or in a condominium, you have to pay the homeowner’s association fees for the shared amenities.
As a new homeowner, you also have to pay property taxes. These tax rates can go as high as 6% of the property value. However, you can consider yourself lucky if you bought a house in Bryan County Oklahoma. Here, property taxes amount to only to 0.64% of the home’s value – one of the lowest median property tax rates in the US.
If you are looking for beautiful yet affordable homes, I can show you around Bryan County OK. Call or email me today.
(county clerk fees) https://okabstract.net/octs/?page_id=72
(property tax rates) http://www.tax-rates.org/oklahoma/bryan_county_property_tax
Brian A. Allen is a Realtor and is full of energy, excitement and zeal for every sale. He spent most of his career in marketing and now applies that skill set to the homes his clients want to sell. Click here to learn more about Brian A. Allen