Woodbury Homes | How Much Does It Actually Cost To Buy A Home?

When it comes to buying a new home, many home buyers often only think of the sale price of the home they are looking to purchase. However, there are many other costs involved with buying a home. Here are some of the additional costs you can expect to have to pay when buying a house: Woodbury Homes

1) Loan application Woodbury Homes

One of the fees that home buyers never think about beforehand are the costs to process your loan application and the underwriting costs to get your loan approved. You can expect to pay about 1% of the total loan costs to cover these fees. Woodbury Homes Woodbury Homes

2) Earnest money Woodbury Homes

An earnest money deposit is a fee you pay (usually 2%-3% of the asking price) when the home seller accepts your purchase offer. It’s seen as a “good faith” deposit to show the home seller that you’re serious about following through on your offer and buying their house. The earnest money is put in an escrow account set up by a third party, and once the offer is accepted, that money will be applied to your down payment. Woodbury Homes Woodbury Homes Woodbury Homes

3) Down payment Woodbury Homes

Including your earnest money deposit, which is applied to your down payment, home buyers typically pay about 20% for their down payment, though it is also possible to pay less than that. The amount of money you put down for your down payment will also determine your loan options and your mortgage interest rate; paying 20% or more will help you get a better interest rate, whereas as paying less will force you to pay for private mortgage insurance, which may end up costing up to 1% of the overall mortgage loan per year and will incur extra costs in addition to your monthly mortgage payments. Woodbury Homes Woodbury Homes

4) Home warranty Woodbury Homes

A home warranty helps cover costs related to systems maintenance or malfunctions, such as electrical systems, plumbing, central heating and air-conditioning, appliances, washer and dryer units, etc. A home warranty plan will help cover some of the costs if any of these things were to become damaged and/or were in need of repair, and typically costs between $350 and $600 a year. Woodbury Homes Woodbury Homes

5) Home owner’s insurance Woodbury Homes

Home owner’s insurance is separate from the mortgage insurance and typically costs between $300 and $1500 a year. Home owner’s insurance will protect you from any costs related to damage done to your home, and the amount is dependent on the area and/or region you live in. For more information about home owner’s insurance or the other types of insurance associated with buying a home, consult your local real estate agent in Woodbury MN. Woodbury Homes Woodbury Homes

6) Home inspection Woodbury Homes

Home inspections are an important step to take before closing the sale on a home and are ultimately done to protect the home buyer. Inspections usually cost between $300 and $500 and take place 10 to 15 days after your offer is approved. If there are any issues that are detected by a professional home inspector–any damages or repairs that need to be done, as well as any other problems–the home buyer can try to negotiate for a lower sale price on the house they are trying to buy, or, the home buyer can also choose to walk away from the deal altogether if the detected issues with the home are too problematic or costly for the home buyer. Woodbury Homes

7) Closing costs Woodbury Homes

Closing costs consist of many fees, including many one-time fees, such as: an appraisal fee (an estimate of the home’s value), settlement fees (to pay the escrow company), property taxes, title insurance (which protects you in case the home seller doesn’t have the full deed or authority to sell the property), and recording fees (paid to the city or county to record your deed in the public records). A home buyer’s closing costs generally cost between 2% and 5% of the final sale price.

8) Extra costs Woodbury Homes

There are various additional costs that you may have to pay when buying a house, such as movers, house maintenance and/or remodeling, utilities, new furniture, appliances, etc. For more information about the additional costs of buying a house and how much money you should expect to save in order to purchase a new house, feel free to consult your local realtor in Woodbury MN. Woodbury Homes Woodbury Homes Woodbury Homes

Woodbury Homes | Tina Lockner

Interested in buying or selling a house in the Twin Cities Metro area of Minnesota? Try contacting Tina Lockner, the best realtor in Woodbury MN! You can contact me at 651-398-6904, or fill out the form below. For more information, you can also view our propertylistings. Woodbury Homes

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Top Realtor in Woodbury Minnesota

Tina Lockner, your local Woodbury Realtor, is licensed in the Twin Cities Metro Area:

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