Real Estate with Sanda O’Brien: tips and information on selling and buying homes in Brookline, Boston, Newton, and Needham; Buyers Agent; Green Certification; Sellers Agent; Certified Relocation Specialist.

Buyer’s Costs

Pause

Most people have heard of 'closing costs', but until they go through the process of buying a property, it all seems to be a mystery.  There are  in fact several payments you will make, small and large, before you walk away with the keys...  and it is best to be prepared.  Most costs vary with the price of your purchase, some are fixed.

pause

Initial deposit : $1000. Will be cashed once the offer is accepted and kept in escrow. Inspection: $300-600, depending on the size of the home, and whether additional services are ordered (radon tests, termite inspection, mold testing, etc). It is money well spent, as it may reveal major defects not visible otherwise, and allow you to withdraw the offer if needed. Full deposit: 5% of sale price, less the $1k already paid. This paid at the time of signing the P&S, as a guarantee to the seller that the transaction is moving ahead. This money will be kept in escrow until the closing. It is not in addition to the down-payment, it will be credited at closing as part of your down-payment. Down-Payment: 5-20% or more of the sale price.This goes to the lender, as your participation in the purchase. Attorney fees: varies. Shop around. The attorney will represent you, and work to protect your interests. He/she will review the condo documents (if applicable), will negotiate with the sellers' attorney the language in the P&S so that you are protected, will make sure the title is clean. Sometimes your attorney may also be approved to work for the lender, in which case you may get a discount on the fee. Ask. Closing Costs: $2000 – $6000, depending on the sale price, the size of the loan, the “points” you include in the loan. It will cover attorney fees (for the bank), pre-paid interest, escrow taxes, recording fees, and other bank fees from your lender. PMI: about 2 months of mortgage payments, only if your down-payment is less than 20%.

 

p

p

For explanation of some terms used here please look at This Page

pause