Real Estate According to Sarah


Real Estate Resources

The decision to buy or sell your home is one of the most significant decisions a person can make in their lifetime. Because of its importance, this task requires a trained professional to help navigate the transaction, and that's where I'd love to help you. As always, feel free to reach out with any questions you might have.


 

Don’t Forget to Budget for Closing Costs

When buying a home, it’s important to have a budget and make sure you plan ahead for certain homebuying expenses. Saving for a down payment is the main cost that comes to mind for many, but budgeting for the closing costs required to get a mortgage is just as important.

What Are Closing Costs?

According to Trulia:

When you close on a home, a number of fees are due. They typically range from 2% to 5% of the total cost of the home, and can include title insurance, origination fees, underwriting fees, document preparation fees, and more.”

For example, for someone buying a $300,000 home, they could potentially have between $6,000 and $15,000 in closing fees. If you’re in the market for a home above this price range, your closing costs could be greater. As mentioned above, closing costs are typically between 2% and 5% of your purchase price. 

Trulia gives more great advice, explaining:

“There will be lots of paperwork in front of you on closing day, and not enough time to read them all. Work closely with your real estate agent, lender, and attorney, if you have one, to get all the documents you need ahead of time.

The most important thing to read is the closing disclosure, which shows your loan terms, final closing costs, and any outstanding fees. You’ll get this form about three days before closing since, once you (the borrower) sign it, there’s a three-day waiting period before you can sign the mortgage loan docs. If you have any questions about the numbers or what any of the mortgage terms mean, this is the time to ask—your real estate agent is a great resource for getting you all the answers you need.”

Bottom Line

As home prices are rising and more buyers are finding themselves competing in bidding wars, it’s more important than ever to make sure your plan includes budgeting for closing costs. Work with your lender and a local real estate professional to be sure you have everything you need to land your dream home.

Courtesy of Keeping Current Matters


San Diego Events to Catch this Month

COVID-19 Update: For any news and updates on the COVID-19 Pandemic in San Diego, click here.

Various Days in June: Summer Movies in the Park (click on movies in calendar for more info)

Various Days in June: Sundays at Six Free Concerts

Various Days at the End of June: Peter Pan Junior Theater's Production of Peter Pan


Sarah Cancel                                                                                                                                                                  United Real Estate San Diego DRE 02055221                                                                                                                                                                                      (619) 253-0296, sarahcansellsd@gmail.com

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