@Anonymous wrote:
I plan to apply for a mortgage later this year and want to get a rough estimate of how much cash on hand I will need to buy a house. I know absolutely nothing about buying a home so I am trying to educate myself now. I plan to use FHA w/a down payment assistance program. From what I've read I will need to come up w/the appraisal fee, inspection fee, down payment, ernest money, and MIP. Ideally I would like the seller to pay for closing costs or at least a portion but I know that is not guaranteed. Are any of the fees I mentioned closing costs? And what other closing cost would be involved. Thanks in advance!
Depending on your state and what down payment assisstant programs are available (if they are available), closing fees can consist of everything you mentioned besides your down payment and other fees as well.
Closing cost usually cost 2-5% of your home purchase depending on mortgage broker, mortgage banker, title insurance company and lending institution.
You can roll over your closing cost into your loan if you qualify for the additional payment.
If you are worrying about paying closing cost and need down payment assisstance it just may be best to wait until you can save some more money before you go jumping into owning a home. Owning a home is not always the best choice for many people, but I do understand the feeling of owning your own home compared to renting. Just keep in mind there are many expenses with owning a home besides the normal expenses you would pay even if renting.
Good Luck
May all your dreams and wishes become a reality!
