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SMITH REALTY |
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Newport, Sunapee & the Lake Sunapee Region of NH
Complete Real Estate Services
Inspections, Fees and other Buyer Info
The amount of your down payment will determine the type of program you qualify for as well as the interest rate. At least 20% down is ideal. With less than 20% down you will probably have a higher interest rate and you will be required to purchase private mortgage insurance (PMI). There are some programs available with as little as 3% to 5% down.
Be sure to check several Banks or Mortgage Companies to compare the programs offered. Compare the APR (annual percentage rate) not just the interest rate for a true comparison.
On the purchase and sale agreement you will decide which inspection contingencies are appropriate for the property you are buying. Some of the choices are:
- General Building, Water quality and radon, Pests: estimate between $250 and $400 for the average size home.(Be sure to check for current prices)
- Septic: estimate between $250 and $400. Price varies depending on whether the buyer or seller is paying for pumping the septic tank and which method of inspecting the leachfield is to be done.
There may be other inspections to consider depending on the type of property you are buying.
Closing costs usually run between 2% to 5% of the purchase price. Some of the items included in the closing costs are:
- Appraisal fee: estimate about $300 to $350
- Attorney fees: estimate about $500 to $600 for an average transaction
- Transfer fees (tax stamps): Buyer and Seller each pay $7.50 per thousand
- Pro-ration of: property taxes, home heating fuel, association fees
- Title Insurance: Lender or Attorney will provide range of options for you
- Generally the Lender will require the first year of the homeowner's insurance be prepaid by closing.
If you are not sure what your credit report shows it might be a good idea to request a credit report prior to starting your home search. Fixing any potential problems can save you time and trouble later on. Ideally you should compare reports from each credit report bureau.
Atlanta, Ga www.equifax.com
Experian
Allen, Tx www.experian.com
Trans Union
Chester, Pa www.transunion.com
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