Scott Himelstein here from the Scott Himelstein Group, your Los Angeles Realtor. Today, I want to be your guide through the maze of home buying costs, particularly if you’re eyeing a property in sunny Southern California. So we’re diving into the five essential costs you need to keep in mind as you embark on this exciting journey.
- Down Payment Dilemma: Let’s bust a myth right out of the gate – you don’t need to cough up a 20% down payment to secure your dream home. Sure, it helps to lower your monthly payments, but you can explore options like 3% FHA financing or even 0% down VA loans (for qualified veterans) or properties in rural areas. Remember, more down payment equals less monthly outlay.
- Inspection Insights: Before you sign on the dotted line, invest in a thorough home inspection. Expect to shell out around $450 to $650, depending on your property’s size and additional features like pools. Don’t forget about the sewer line inspection either, which typically costs $250 to $300. Plan for about $1,000 to $1,200 for all your inspection needs to ensure you’re aware of every nook and cranny of your potential abode.
- Appraisal: If you’re securing a loan, brace yourself for the appraisal process. This ensures the property’s value aligns with your purchase price. Appraisal costs range from $450 to $550 on average but could spike for larger homes or if a second appraisal is necessary. It’s a non-negotiable upfront cost, so be prepared.
- Crunching Closing Costs: Closing costs typically hover around 2% of the purchase price. These cover expenses like escrow fees, title fees, and lender fees. While it’s wise to consult your lender for specifics, planning for 2% should keep you in the ballpark.
- Moving Matters: Don’t overlook the expenses associated with moving into your new abode. Whether you’re renting a truck or hiring a moving company, costs add up quickly. Factor in fuel, helpers, and potential mileage fees. Moving isn’t cheap, even if you opt for the DIY route.
Bonus Tip: Working with us and our preferred lender can help offset some of these costs. From covering appraisal and inspection fees to offering valuable insights, our team is here to support you every step of the way.
And there you have it – the essential rundown of home buying costs. If you have any questions or need guidance on your buying or selling journey, don’t hesitate to reach out. I’m Scott Himelstein, and it’s been a pleasure sharing this information with you. Until next time!
