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OKay…I want to buy a home. My husband and I are young and first time buyers. Do we pay the closing cost out of pocket or add it to the loan? what will we have to pay for out of pocket…can some one explain in english the process of buying a home and whats needed. i was also planning on asking about HUD homes etc..

2 Thoughts on what to expect when buying a house?
  1. Reply
    August 1, 2011 at 9:10 am

    One thing to do is to always have the home inspected by a professional home inspector. There are so many things they can find that you may not see. The money is well-spent. You do not do this until you have made an offer on the house.

  2. Reply
    A D
    August 1, 2011 at 9:58 am

    Congratulations to you and your husband. I hope you find just the right home for your needs.

    You don’t say where you are planning to buy a home, my comments are based on my experience as a REALTOR in TX.

    I would recommend that you start out asking family and friends for recommendations for a good real estate professional in your area and also for a mortgage lender/broker. Referrals are good leads from people you trust who have had a good experience. (PS-if they tell you to stay away from certain RE Prof. or lenders, heed that advice too.)

    I think the first steps are to find out what is going on in your local real estate market and get pre-approved for a mortgage loan. Your real estate agent and lender can tell you what type of costs to expect at closing.

    I wouldn’t recommend buying a foreclosure property (HUD or other type) unless your real estate agent is very experienced in these types of transactions.

    Buying a home can be very stressful, especially for first time homebuyers. And home ownership can be very stressful and expensive when you are used to calling the LL to fix almost everything that goes wrong. Why add to that stress by trying to save a few dollars trying to buy a property that may have had years of “deferred maintenance” that will be your problem after closing?

    I would figure on about 3% of the sales price for closing costs in addition to your down payment. As mentioned by another poster, don’t forget to figure in the cost of a home inspection by a licensed home inspector. You really don’t want to have any unexpected “surprises” after closing. A good home inspector can really help. Your real estate agent should be able to give you a list of experienced, qualified local inspectors available. The inspector will probably cost from $ 300 up (depending on the scope of the inspection and the size of the house and amenities/specs). Where I live, you also want to get a termite inspection. If the house is on a septic system or well water, these are other types of inspections you will want to get – and there will be a fee for these as well. Again, your real estate agent should be able to tell you how much you will probably need to pay at closing or before.

    I strongly recommend that you “hire” an experienced, local real estate professional to represent your interests in this transaction. The Buyer’s agent is typically paid a share of the commission that the Seller has agreed to pay the Seller’s agent (the listing agent…the one whose name is on the “For Sale” sign in front of your new home)…so, there is NO cost to you to have professional representation. This is critical.

    A good buyer’s agent will be able to explain step-by-step and dollar-for-dollar what to expect and prepare for.

    Good luck.

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