Costs Associated With Buying a Home
Let's look at the translation from just a cost point of view, from a buyer's perspective. These costs are specific to San Francisco, California.
The purchase price is the big picture, but its not an amount you need to pay unless you are paying with cash. If you are getting a mortgage or a loan you are paying monthly in installments for that.
1. Costs associated with getting a mortgage.
Some fees include
-Origination fee
-Appraisal fee
-Underwriting fees
-Credit report fee
Each lender and bank have different rules and fees. Interest rate is but just one fee that the lender will charge and that is based on you, your credit score/history, your assets, your debt…
2. Initial deposit.
When your offer is accepted by the seller you wire 3% of the purchase price into an escrow account the very next day. This money needs to be available to you.
3. Escrow and title fees
If you don't know what escrow is go back and read this article
The article also explains what title insurance is.
This fee is paid at closing and rounds out to about 1-2% of the purchase price
4. Special costs/Misc
-Attorneys
-Homeowner Insurance
-Moving
-Repairs
In San Francisco the seller takes care of most of the costs of real estate transaction such as
-Real Estate Commission which is 6% of the purchase price split between both sides agents and then again with their brokerages.
-Transfer tax which in San Francisco is .75% of the purchase price
If you have any questions, send me an email. Marina@marinashiferman.com
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