There are many potential homebuyers, and even sellers, who believe that they need at least a 20% down payment in order to buy a home or move on to their next home. Time after time, we have dispelled this myth by showing that many loan programs allow you to put down as little as 3% (or 0% with a VA loan).

If you have saved up your down payment and are ready to start your home search, one other piece of the puzzle is to make sure that you have saved enough for your closing costs.

Freddie Mac defines closing costs as:

“Closing costs, also called settlement fees, will need to be paid when you obtain a mortgage. These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction. Closing costs are typically between 2 and 5% of your purchase price.”

We’ve recently heard from many first-time homebuyers that they wished that someone had let them know that closing costs could be so high. If you think about it, with a low down payment program, your closing costs could equal the amount that you saved for your down payment.

Here is a list of just some of the fees/costs that may be included in your closing costs, depending on where the home you wish to purchase is located:

• Government recording costs
• Appraisal fees
• Credit report fees
• Lender origination fees
• Title services (insurance, search fees)
• Tax service fees
• Survey fees
• Attorney fees
• Underwriting fees

Is there any way to avoid paying closing costs?

Work with your lender and real estate agent to see if there are any ways to decrease or defer your closing costs. There are no-closing mortgages available, but they end up costing you more in the end with a higher interest rate, or by wrapping the closing costs into the total cost of the mortgage (meaning you’ll end up paying interest on your closing costs).

Home buyers can also negotiate with the seller over who pays these fees. Sometimes the seller will agree to assume the buyer’s closing fees to get the deal finalized, which is known in the industry as ‘seller’s concession.’

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

Shared from My Keeping current matters

Living in the moment!

This year one of my unwritten goals is to live in the moment which to me that is a challenge in itself. The mind tends to muddle up those moments when I am trying to enjoy the moment.  Have you ever been enjoying yourself and that crazy to do list for Monday (Two days away) keeps popping in your mind and for some reason you are now think oh now what if I forget something or what if I don't do it right?  Just enjoy the moment they say?  I do but, I will say most times it is halfheartedly and really s if I think about it more will I get it done differently?  I don't think so but, my brain has to be busy at time of enjoyment or relaxation.  Working on ways to keep my mind at bay and still enjoy the moments is going to be a challenge but, here are some thoughts on how we may do that.

• Write down your to do list ahead of time
• When the thought weight you down when you should be living in the moment make a decision to either ignore it or do something about it  and move forward.
• Just let it go  

How do you live in the moment?  Do you struggle or do you have a great technique you use?  (Please share).

Have a great day and remember life is too short to live only in the future.