When you are about to close on a house you are probably excited right? You are thinking about moving into your new house and starting a new life. One thing you might have forgotten is the high cost associated with closing on a home.
Home settlement loans can be a lifesaver in this case Even though it might seem odd, a lot of people just are not aware, especially if they are first time home buyers of the many costs associated with closing on a home that will not be included in their original mortgage loan.
Some of the closing costs
When you put down a down payment on a home, you are paying for the home, not the associated closing costs. These costs are not included in your loan, and they can easily add up to thousands of additional dollars you might not have. Some of these costs might include the cost of appraising the home. Some lenders will include this, but some won’t.
In some cases you might want to hire your own private appraiser. This can easily cost hundreds of dollars, and we cannot forget the cost of having a survey of the home done.
If you make a down payment on your home for less than twenty percent of the value of that home you will need mortgage insurance. This will help to protect the lender in case you do not make the loan payments.
You will also need to make sure you have homeowners insurance and hazard insurance on the home before everything can be settled. All of this will be required at closing, and these costs can add up to thousands. An additional loan might be needed in this case; especially should you decide to hire an attorney to help see you through this process because all of it can be quite intimidating at first.
Home settlement loans should be kept to a minimum, and this can easily be accomplished once you know what you are getting yourself into. You have more costs then what you know, and it is important that you factor all of these costs in.
In most cases you can keep these costs low but not if you go into the situation with blinders on. If you are a first time home buyer it makes sense to hire an attorney to help walk you through the process. Once you know how the process works you will not need them should you buy a home in the future.