As soon as I realized that my personal financial picture was a little bleak, I started thinking about taking out a personal loan. I wasn't really looking forward to going into debt, but I knew that if I wanted to solve a few short-term problems, a loan would be the way to go. I talked with a few of my local financial institutions to get a good idea of what they could offer me, and then I sat down to go over the paperwork. It was incredible to see how much money I could save by securing a lower interest rate. Check out my blog for more information about loans.
Until you've actually closed on a home, your "closing costs" are generally considered to be a little abstract. Most mortgage companies will give you an estimated average of your closing costs, but you might not always have a clear picture of what's included. When your final documents are given to you in escrow, you'll have a line-by-line breakdown of your cost. If you have a 0% down loan, these closing costs could actually be rolled into your loan... and you could be paying interest on them.
A home warranty is often included on both new and old houses, in order to protect you from appliance breakdowns within the first few months to a year. Home warranties usually aren't very expensive, averaging from $400 to $500 depending on the value of the home. But a home warranty also isn't very necessary, and many real estate agents now discourage their use. This is because home warranty companies are notoriously difficult to deal with. A home warranty is generally included on a mortgage expense sheet for peace of mind and, for most, it can be safely excluded.
Obviously you need home insurance if you're going to purchase a property. But you don't have to go with the insurance that your realtor has found for you. Most realtors and mortgage brokers will automatically include home insurance payments for a year within the closing costs. If you think you can get a lower premium -- or if you're already with another company -- this is the time to interject.
The home inspection is the only last minute addition you usually cannot get away from -- and that's because the inspection is completed and billed later. If you're at the escrow process and you're getting a mortgage, you've already completed a home inspection. The inspector simply deferred payment until closing. However, just because you need to pay it doesn't mean that it has to be in the loan. This is a fee you may want to pay directly.
If you want to save money on your closing costs, you can always go line-by-line with your mortgage broker--someone from a place like Premium Mortgage Corp. Most of these things are not required, they are simply advised -- and you can often save money by negotiating terms on your own. Some of these closing costs can also be picked up by the seller if they are eager to sell. The time to go over these documents is the moment you get them from escrow -- and your real estate agent can help.Share
30 March 2017