Part 2 (Get Set)

How much money does it actually take to buy a house?

Let’s break it down.

If you’re using cash, your closing costs are generally lower because you are not paying bank origination fees and costs. 

For people using a lender, you’ll need more than just your down payment. You’ll likely need closing costs, appraisal fees, inspections, and potentially repairs.

What are closing costs?

In North Carolina, we use attorneys versus title companies. They(the attorneys) give their opinion of the title and that’s what your title insurance is based on. 

Your closing costs will include the attorney fees that they charge for their services. It will also include fee’s like if they have to overnight the signing packages to you. The cost will vary from attorney to attorney and you can get multiple quotes. Several attorney’s around here do give discounts for cash closings. 

The lender will charge you fees for “originating” the loan. The lender should give you a good faith estimate and each lender will vary. Keep in mind that cheaper doesn’t mean better. I had a horrific experience with a national chain recently. It’s a long story, but my clients ended up losing money and their dream home because of the incompetence of that lender and their inability to do their job. In the previous blog I referenced several lenders I recommend contacting. 

Here is some extra advice,

Don’t take any of the things the lender tells you personally. It can feel very personal when you hear something you don’t like or they need explanations for things on your credit score. 

When the process is portrayed as easy, you can feel like a failure if everything doesn’t go perfectly. But most likely there will be bumps along the way. Maybe there will be roadblocks and maybe you’ll need to wait a little longer to buy than you wanted to. It may seem silly to say but I’m gonna say it here in print so you can see it.

You’re not a bad person if you have imperfect credit. Or not enough income. Or if the percentages don’t work for the lender or if you have medical debt that you didn’t pay.

Keep everything in perspective and try to stay as unemotional as possible.

We’ll get through this. 

As always, we’re here to answer all your questions.

And if you need a list of lenders, we’ve got them, including the guy whose done all my personal loans Bill Baragona