Most people make a sizable down-payment when they purchase a home, at least 3% of the purchase price of the home. It is possible today to purchase a home with no-money down. That means that you can, in a variety of ways, borrow 100% of the purchase price of the home. There are other costs, however, involved in buying a home. There are fees that a lender will charge to make the loan – often a one percent origination fee, a document preparation fee, underwriting fee, for a credit report, for an appraisal, and more. There will be the cost of have an inspector review the home for you so that you are sure that there are no major problems with the structure or equipment in the home. You will have to pay for homeowner’s insurance in advance, and deposit some amount for future insurance and taxes. Generally we refer to all of the costs that are not part of the purchase price as closing costs, and you can ballpark these costs at 1.5% of the purchase price of the home. More on closing costs >>> |
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