What do my closing costs include?

Closing costs are typically fees associated with acquiring the property. They don’t generally effect the price of the house. 

Down payment goes towards the purchase price and the remainder is the loan.

Buyers costs before closing paid to the seller

  • Due Diligence Money
    • This amount is negotiable. When you are battling multiple offer situations, upping this could be the advantage you need. However, this money is the sellers once they accept your offer. If there is anything about the house that could scare you away, don’t put down more than you are willing to lose if you walk away from the deal. This will be a credit from the seller when you close since they already have it and it needs to be accounted for. On short sale and foreclosures this is not needed. Builders generally don’t have this and they call it a builder deposit.
  • Builder deposit ~500$-20% of purchase price.
    • Money that you put down for a builder to work with you on a new home purchase. These are generally not refunded unless the loan is not approved. This will show up on the closing documents as a deposit from you towards the house.
  • Earnest Money ~1-2% of the purchase price
    • Earnest money is put down as good faith money that gets put into a company’s trust account and held until closing or refunded if you terminate the contract before the due diligence period. I normally go for around 1% of the sale price.

Costs paid for inspections to the companies directly.

  • Home Inspection ~500$, based on the square footage of the house.
  • Termite Inspection ~90$
    • NC has termites everywhere. You can’t get away from them! New construction has a termite bond on the house. If you keep renewing you can get a deal to have the company maintain the termite protection.
    • Keep untreated wood away from the house. If you have a wood burning fireplace, put your wood stack near the back of your property and bring smaller loads up/in as needed.
  • Radon Inspection ~150$
    • Radon is a naturally occurring radioactive gas. It works it’s way up through the earth. Testing typically involves having a machine that sits in the home for an extended period and measures the levels through the day. It can be mitigated if found to be above 4pCi/L inside. Click here for more info on Radon.
  • Septic Inspection
  • Well Inspection
  • HVAC Inspection
  • Pretty much any inspection

Closing costs for the loan. Paid to the lender.

  • Appraisal ~400$
  • Credit Report ~50$
  • Flood Certificate ~30$
  • Lender Title Insurance ~.0015% of purchase price
    • Protects the lender should there be an issue in the title that was not uncovered during the title search.
  • Loan Origination ~1% of purchase price
  • Loan Down Payment
    • This will be the money you are bringing to put down on the house. Typical amounts are anywhere between 3.5%-20%. There are some 0% down loan programs out there.
  • Prepaid Interest
    • Based on the day you close on the house until the first payment.
  • Points – % of purchase price.
    • These are optional buy down or credit back. Each “point” is based on a percent of the loaned amount. To quickly calculate the number. Take your purchase price (400,000) and multiply it by the percent of the point (0.4% would be 400000x.004) to get your price (1600) that would be paid by you or to you.
  • Private Mortgage Insurance (PMI) ~100$/month
    • Required on loans that do not meet the banks threshold for equity invested. Normally this is 20% down on the house and finance the other 80%.
    • This protects the bank should the loan go into default.

Other closing costs

  • Survey ~500$
  • Recording Fees ~90$
  • Courier Fees ~50$
  • Owner Title Insurance ~.0012$ of purchase price.
  • Property Taxes
    • Prorated for the year with seller. May be credited to you or seller depending if they are already paid.
  • HOA Dues
    • prorated from the day you close on the house to
  • HOA Transfer fee ~150$
    • One time transfer. Amount differs based on the HOA.
  • HOA Working Capital fee ~150$
    • One time payment into the HOA maintenance.
  • Home Owner Insurance
    • 1 year paid up front.
    • Contact your insurance company to get a quote. Some overages to ask about:
      • Flood
      • Electronics
      • Guns
      • Jewelry
      • Wind damage
  • Attorney ~700$
  • Home Warranty ~550

Money put into escrow

  • HOA Dues ~3 months
  • Taxes ~3 months
  • Home Owner Insurance ~3 months
  • Private Mortgage Insurance (PMI) ~3 months

For a list of most costs in an table format, click this link:

Google Doc of Buyer Closing Costs

 

Thanks for visiting!

#4x4realtor #newconstructionspecialist #sell919

Downsizing After a Spouse’s Death: How Caregivers Can Help

Elder sitting on porch

After a spouse dies, a senior’s marital home can feel painfully big and empty. And now that she’s left to manage it alone, it’s much harder to keep up with the chores and maintenance. While it’s always difficult to leave a home that’s rich with memories, downsizing to a smaller home can ease a senior’s burden in this new phase of life.

Downsizing after a spouse dies has many advantages. With less square footage, housekeeping chores are kept to a minimum. This is a huge relief to seniors struggling with mobility changes, as once-simple chores can become all-day tasks in old age. With less to clean, seniors can reserve their energy for more pleasurable activities.

A smaller home is also an opportunity to minimize financial burdens. A downsized home isn’t just cheaper to buy, it also offers savings in property taxes, homeowners insurance, and other necessary expenses. That increases financial security and peace of mind in old age.

For seniors who live far from the city center, downsizing is also an opportunity to move closer to the people and services they rely on. A compact home near public transit ensures elderly adults can get to doctor appointments, church services, and other important places after they’re no longer able to drive to. It also puts seniors in closer proximity to the community, so they can find friendship and social support in the absence of their spouse. The importance of social connection in old age can’t be overstated. You can learn more about the value of social relationships for seniors at the American Society on Aging.

Despite the benefits of downsizing, seniors often stay in place due to the work involved in selling a home and moving. As a caregiver, you can provide instrumental support to make the move possible.

Start by gently broaching the conversation. Seniors are understandably hesitant to make major life changes, but you can make moving less intimidating by highlighting the benefits. When keeping house, point out how a smaller space would be easier to clean. If homeownership expenses are causing financial stress, crunch numbers together to show how a smaller home could save money, and how selling her current home could bring in much-needed cash for other expenses. The best downsizing experiences are those where the senior is a ready and willing participant.

Caregivers can also help identify a senior’s housing needs. Collaborate on a list of must-have features for a new home, like a stair-free entry, single-story living, and ample lighting. Identify the home features that give your loved one the most trouble and seek housing that eliminates them. You can find guidance on aging-friendly housing at Architectural Digest.

Finally, caregivers and loved ones can provide essential help preparing for the move itself. After years of living in a home, seniors tend to own a lot of excess. Before relocation, help your loved one sort through belongings and decide what to keep, sell, donate, or discard. The less there is to move to a new home, the easier the move will be. However, decluttering a lifetime of belongings is emotionally tiring, especially if the senior is still grieving. Allow plenty of time for the downsizing process so you can take it slowly and minimize the emotional impact. If your loved one is having an especially difficult time getting rid of belongings, rent a storage space to move her excess stuff to for the time being. You won’t have to move as much to the new home, and you both can revisit sorting through the items at a time when she’s feeling more ready.

A move to a smaller home can be a move toward better health and happiness in old age. But for a senior mourning the death of a spouse, it may feel like a move away from memories. As a caregiver, it’s important to remain sensitive to the difficulty of this transition and to guide your loved one with as much patience and understanding as possible.

Guest article provided by Michael Longsdon from Elderfreedom.net (2018Nov14).

Pandemic Legacy Season 2 – Log 8 – Jul 20th 71 AV

Picture of the Pandemic Season 2 box.

Jul 20th 71 AV

Read Log 7

Since finding the lab, we repaired their satellite towers and learned how to make some basic towers out in the field. This will allow us to quickly send info back and forth between teams. We’ve had radios for a while and they work great, but they didn’t really let us have direct communications between our different roaming teams. This will be a game changer!

Continue reading “Pandemic Legacy Season 2 – Log 8 – Jul 20th 71 AV”

Pandemic Legacy Season 2 – Log 6 – May 30th 71 AV

Picture of the Pandemic Season 2 box.

May 30th 71 AV

Read Log 5

The beginning of May was horrible. It felt like we just couldn’t catch a break. Capt Jack was able to discover a few pockets of survivors in Bogata. We tried to expand a lot this month. I think we spread ourselves a bit too thin. Torbolt and his team heard of some people that were in need of some help in Mexico City. We decided to make that their priority.  After some searching they found who they were looking for and dropped off some much needed supplies.

Continue reading “Pandemic Legacy Season 2 – Log 6 – May 30th 71 AV”

Pandemic Legacy Season 2 – Log 5 – Apr 16th 71 AV

Picture of the Pandemic Season 2 box.

Apr 16th 71 AV

Read Log 4

Torbolt found himself in the middle of an outbreak. Half of his current team was lost in that mission. Torbolt himself has a few scratches but our medics assure us he and his remaining teammates are not carriers of the plague. We have taken a vote from the heads of the Havens and decided to put them back in the field. We had to get a few new people trained to take over the fallen’s positions so their first excursion will be next month. Hopefully the training we are putting them through will be enough to keep them alive.

Continue reading “Pandemic Legacy Season 2 – Log 5 – Apr 16th 71 AV”

The Benefits of Staging When Selling a Home

staged house

Seller’s market conditions persist in cities across the country, as inventory continues to fall short of demand. Under these kinds of conditions, sellers typically enjoy competing offers from buyers.

But that doesn’t mean sellers should skimp on the home staging. By staging your house for buyers, you can increase the chance for a quick sale and a full-price offer. And those are good things!

What Is Home Staging?

Home staging is when you take proactive steps to make your house more appealing to the majority of buyers. “Majority” is the key word here. Some people will dislike a certain property no matter what kind of staging is done. Taste is subjective, after all. But there are certain steps you can take to make your property appeal to the majority of potential buyers. And that’s precisely what home staging is all about.

Continue reading “The Benefits of Staging When Selling a Home”