Buying Your Home

How to Budget for Closing Costs

What Closing Costs Will You Pay?Home buyers and sellers will hear the term closing costs bandied about constantly. They may not know exactly what they are and what they cover, but they know there's a bit of a power struggle going on with who's going to pay for them. It's a general rule that they're covered by the buyer, but the seller may choose to pay for them in an effort to sweeten the deal. But before accepting or negotiating an offer, it helps to know exactly what closing costs are first.

Services Rendered

Closing costs are paid to the lender and affiliated professionals for any and all work that must be completed before the loan is officially processed and closed. Buyers are required to receive paperwork that states both the estimate of the loan and disclosure of all fees. When it comes to the lump sum of money a buyer pays, it typically amounts to between 2 and 5% of the total purchase price of the home. While a 3% range may not sound like a lot, it could be thousands of dollars worth of additional costs on top of what a home buyer is already paying.

How Costs Are Totaled

Closing costs vary based on the work done to the home as well as the circumstances behind the home loan. Part of budgeting for closing costs is picking a loan that will subvert at least some of the additional fees. Closing costs vary based on whether or not buyers choose an adjustable-rate or a fixed mortgage, so research is pivotal when it comes to picking a lender for your Market Common...

Home Insurance Guide for New Home Buyers

Basic Information About Homeowner's Insurance For BuyersAfter making an offer on a home, home buyers applying for a mortgage must get a homeowner's insurance policy. When that happens, it's helpful to know exactly what homeowners insurance is, about how much it costs, and whether or not it's a requirement of purchasing the home. For a new home buyer, this guide can help.

What Is Homeowner's Insurance?

Homeowners insurance is a type of insurance that insures a dwelling and belongings in the event of a covered disaster. Homeowners insurance usually comes as a package that includes a variety of other protections, like liability insurance to protect homeowners from legal action in the event that someone is injured on the property.

Is Homeowner's Insurance A Requirement?

Homeowners insurance is usually a requirement if the homeowner gets a mortgage. Lenders require buyers to get insurance to protect the property. Insurance coverage must be in place when the home is bought or the financing will not go through.

The mortgage lender will continue to require proof of insurance throughout the life of the loan. In the event that the insurance coverage lapses, the lender will purchase a policy for the buyer and add the payment for the policy to the monthly bill. Typically, these insurance policies are much more expensive than the policies that homeowners would get on...