What is that one fee that most people worry about before buying a home for sale in Sandy Springs, GA?
The down payment!
Most mortgage lenders ask for a 3.5% down payment. However, this amount is dependent on your credit score. The higher the credit score, the smaller the down payment will be. If the credit score falls below 600, then the lenders usually require 10% to 20% down payment.
But wait a minute. You were so busy worrying about the down payment that you forgot about the other fees that needed to be paid for the home purchase. Before getting the loan, you will be required to pay eight other major fees to the lender and other key people, who will help you get your dream house.
Following are the fees explained briefly:
1. Appraisal Fee
An appraisal costs around $200 to $425. Think of it as the monetary assurance your mortgage lender needs before giving you the loan. It shows the lender proof that the loan you have asked for matches the value of the house.
2. Home Inspection Fee
The home inspection fee is somewhere between from $300 to $500. One of the biggest home-buying mistakes is letting go of the home inspection. Saving a few hundred dollars will cost you thousands in the future, when you will start discovering all the repairs in the house. Home inspection covers structural issues, leaks and molds. It also assesses the plumbing situation and the condition of the cooling and heating system, water heater, gutters and the roof.
3. Application Fee
An application fee costs around $75 to $300. Before approving the loan, the mortgage lender checks your credit report, the cost of which is included in the application fees. Before moving forward, ask the lender for a fee breakdown, so that you can understand the costs.
4. Lender’s Origination Fee
This fee is calculated according to the amount of the total loan. Usually, the mortgage lender asks for a fee that is 1.5% of the loan. This fee includes charges for the loan application, funding the loan and underwriting the loan.
5. Title Services
Title services fee costs around $150 to $400. A title search shows that the home for sale in Sandy Springs, GA you are thinking to buy is legit and is under the name of the seller, you are purchasing it from. Other fees included in title services include government filing fee, notary fee and more.
6. Survey Costs
The survey report costs around $150 to $400 and gives details about the property’s dimensions, major features and boundaries.
7. Tax Service Fee
The taxation fee service is just $50, which is paid to find out whether the tax payment documents of the house are in order or not.
8. Private Mortgage Insurance
If your down payment for the loan is less than 20%, then the lender asks you to buy private mortgage insurance. This protects the lender in case your house forecloses, before the loan is paid back. The rate for this fee can be anywhere between 0.3% and 1.5% of the original loan amount.
So, there you go… eight fees that need to be paid before the actual monthly payments of the loan starts. When contacting people for these services, make sure to shop around and compare prices. The first thing you need to do is get the home for sale in Sandy Springs, GA evaluated to find out whether it is worth buying or not. Visit America’s Network Realty Group Inc. and get an accurate evaluation from experts.