Buying a home in Asheville NC is one of the largest financial transactions most people make in a lifetime. In addition to saving for the down payment, there are many other costs associated with buying a home, such as home inspections, appraisals and escrow fees are all considered closing costs and are out of pocket expenses for both buyers and sellers. If you are financing the home, then there are additional lender fees to consider as well. Read on to get a full explanation of home closing costs and how you can budget appropriately.
The Basics of Closing Costs
Closing costs are typically out of pocket costs associated with buying—or selling—a home. Some loan programs will allow you to “finance” most of these costs by adding the cost to the loan balance, but it’s important to remember that the home must still appraise for the additional value and not all programs allow you to do this. It’s better to plan for the extra cost which can range from 3-7% of the home’s total purchase price.
Typical Closing Costs
The full list of closing costs involved in your specific transaction while be outlined on a form called the Good Faith Estimate (GFE). This will be provided once you have entered the settlement/escrow period. It will disclose costs associated with concluding the transaction. You can expect to see items related to loan fees and costs, appraisal, title insurance and transfer fees, processing and recording fees, hazard insurance and property tax costs among many others.
If you are considering a home purchase, it’s time to speak with a local lender to get a full understanding of the costs associated with buying a home. In this way, you can ensure you have saved what you need to close on your dream home. Get in touch with a local Asheville real estate agent to point you in the right direction and be your guide for the entire home buying process!
About Asheville Realty Group
Asheville Realty Group is a boutique brokerage firm offering full-service real estate services. We have locally experienced agents who specialize in residential homes, luxury homes, country-side acreage and everything in between. We love Asheville and the surrounding mountain communities that we call home!
Get in touch with us today by filling out the form below or give us a call at 828-252-1910