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Don’t Forget the Closing Costs When Buying in Tucson
Manage episode 156470890 series 1190625
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Typically, when we work with buyers, many assume that the down payment is the only money they will need to pay out of pocket for the property. These buyers get a rude awakening when they realize there are other costs. That’s why today, we’re talking about closing costs.
First of all, there’s the down payment. There are some loan programs that don’t require any money down. In Tucson, there’s even a down payment assistance program. If you don’t want to pay any money out of pocket, you will still need a savvy agent to negotiate closing costs.
Closing costs include loan origination fees and other fees. If you are working with a DPA program, you can probably come in with a 3% down payment. If your agent doesn’t negotiate the closing costs, however, you will actually need to pay 6.5% out of pocket.
In our current market, homes priced around $250,000 are in a strong seller’s market. That said, sellers are still paying closing costs. You may have to offer closer to the asking price in order to make that happen, but it will mean less money out of pocket at the end of the day.
There are other fees that a buyer needs to be aware of as well. We always recommend that buyers conduct a home inspection. These usually run around $300 to $350. For smaller properties like townhouses and condos, a home inspection might only cost $280. This is a small investment to make in order to know everything about the property before you buy it.
On top of the regular home inspection, you should also get a termite inspection. Termite inspections only cost $40 to $60. It’s important to make sure that the property doesn’t have any termites because banks won’t finance your home purchase if there are termites.
As you can see, there are many costs involved in buying a home. If you have any questions, give us a call or send us an email. We would be happy to help you!
First of all, there’s the down payment. There are some loan programs that don’t require any money down. In Tucson, there’s even a down payment assistance program. If you don’t want to pay any money out of pocket, you will still need a savvy agent to negotiate closing costs.
Closing costs include loan origination fees and other fees. If you are working with a DPA program, you can probably come in with a 3% down payment. If your agent doesn’t negotiate the closing costs, however, you will actually need to pay 6.5% out of pocket.
In our current market, homes priced around $250,000 are in a strong seller’s market. That said, sellers are still paying closing costs. You may have to offer closer to the asking price in order to make that happen, but it will mean less money out of pocket at the end of the day.
There are other fees that a buyer needs to be aware of as well. We always recommend that buyers conduct a home inspection. These usually run around $300 to $350. For smaller properties like townhouses and condos, a home inspection might only cost $280. This is a small investment to make in order to know everything about the property before you buy it.
On top of the regular home inspection, you should also get a termite inspection. Termite inspections only cost $40 to $60. It’s important to make sure that the property doesn’t have any termites because banks won’t finance your home purchase if there are termites.
As you can see, there are many costs involved in buying a home. If you have any questions, give us a call or send us an email. We would be happy to help you!
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