Boise Home Loan and Closing Costs

To find out what your monthly payments will be for your new home and an estimate of the cash you will need for closing please contact Kelly

For some great investment calculators and tools check out this page from CNNMoney

How do I know how much money I need to buy a house? What are closing costs?

You need to expect to pay some extra fees at closing on top of the initial down payment in order to buy a home. These are fees on top of the sales price that are due before you actually own the property. Often times when you get a mortgage, closing costs will total around 3% of the purchase price, but they can vary by quite a bit depending on the property and type of loan that you go with (think 3-5%). If you are able to buy a property in Boise by paying all cash, your closing costs will be significantly lower, but there are usually still some title and escrow fees at the very least. Other costs to consider that need to be paid along the way are the home inspection, repair and appraisal fees. Some of these fees can be negotiated or rolled into your loan payments. Remember, there are closing costs for both the buyer and seller (head over to the sellers page for more on that). It is best to talk with a Realtor or even better yet contact a mortgage broker before you start the home buying process, and then call me (208-521-4222)- they will get you a pre-approval letter so that you can make an offer on a home that will get accepted and they should outline all of your expected costs so that you aren't caught off guard anywhere along the way.
Common closing costs for the buyer include:

Loan processing and recording fees, credit report, escrow and title recording fees, title insurance, appraisal fees, home inspection (and re-inspection) fees, homeowners insurance, prorated property taxes (this is often a credit to the buyer in Idaho because of how the state's tax system is designed) and the mortgage interest charges for the month you are closing, which will change depending on the day of the month you officially "close". All of the charges will be outlined and explained to you by the closing agent at the Title Company, but your loan officer should keep you updated about the biggest costs which often revolve around the loan from the beginning. While the real estate agent (me) will help coordinate things during escrow and gather information for their buyer, it is best that you as a buyer know what you can afford and what you will be obligated to pay once you are under contract to purchase a piece of real estate, Remember, the total amount of cash that you will need to buy a home when you get a loan includes all of the closing costs and your down payment (plus you will need an earnest money check for the day you make your offer) I know this might be confusing and seem overwhelming, but don't worry, I will walk you through the whole process!

 EXAMPLE: If you are buying a $200,000 home, and you decide to put 5% down, the total cash you need to get into your new home will be more than just the down payment of $10,000. (Trust me, I wish it were this simple). Closing costs can oftentimes be negotiated when you make an offer. though Depending on how the purchase agreement is written when we make an offer, it is sometimes possible to have the seller pay for some or all of the buyer's major closing expenses. This make out-of-pocket costs easier for the buyer on the day of closing. This more rare in a sellers market when the owner has less incentive to help you buy their house unless it has been on the market for a long period of time or the seller is eager to take any deal.

Here is one example of the money you may need during the home buying process for a $200,000 home:
  1: Make an offer on a home: you usually include an earnest money check for around 1% of the purchase price at this time. Think of this as a down payment for the sellers to take your offer and stop marketing their home for sale. This money is deposited right after the offer is accepted by all parties (usually a day or two after writing and negotiating the offer), if the offer or any counter offer is not accepted then money never gets deposited and stays in your bank account ntil you get another offer accepted . Cost = $2000 (this amount can vary from very little to thousands of dollars)
  2: Hire an independent home inspection: This occurs within about 10 days of the accepted offer. This is optional but highly recommended. You will need to pay this yourself usually, and it is non-refundable, even if the home ends up having MAJOR problems. Cost =about $350-$450
  3: Close (Actually BUY) your new home: This happens roughly 30-40 days after step 1. The loan processing should be completed and a title check and other legal necessities have been completed so the appointment made at a convenient time for the buyer (and seller)..
  4: The total cash you need at the day of closing could be, if you are putting 5% down on the $200,000 property and getting a loan...
 Cost = an additional $6000,  THEN, on top of the 5% down, you will need to pay your portion of the taxes (the property taxes usually are a credit instead of a fee in Idaho), home insurance costs, loan processing and recording fees, appraisal fees if they weren't paid for in advance, the current months and often times the next months mortgage payment and your agreed upon portion of the title and escrow fees. Sometimes you will receive credits from the seller's for the regular title insurance, past due bills/liens, repair credits, and other miscellaneous things. So, the total initial out of pocket costs to buy a $200,000 dollar home are normally much higher than just a down payment and future monthly loan payment.

This example is by no means meant to be anything more than a rough estimate of a real estate transaction. Every situation is unique when buying or selling real estate.
I advice you to contact legal counsel before considering buying or selling any real property and having a qualified lawyer advise you before signing any contracts.