Maggie Foster is your Johnson County Real Estate expert.
If you are buying a home, there are extra costs that may surprise you. It’s important to understand and prepare for these additional costs. Especially so you’re not caught off guard.
First up is closing costs. These can include loan origination fees, appraisal fees, and title searches. Typically, they range from 2% to 5% of the home’s purchase price. Keep this in mind as you’re preparing to submit offers. In a seller’s market, we are seeing buyers typically pay for their own closing costs due other competing offers. Depending on your financial situation, some lenders offer financed closing costs.
Next, there’s homeowners insurance. This is essential to protect your new investment and personal belongings in your home from unforeseen events such as a hailstorm, fire, or water damage. Most lenders require homeowners insurance if you are obtaining financing for your home.
Don’t forget about property taxes. Depending on where you live, these can vary, but they’re a yearly expense you’ll need to budget for.
Lastly, if your down payment is less than 20% on a conventional loan, you might be required to pay “PMI”, which is private mortgage insurance. This protects the lender in case you default on the loan.
It might seem overwhelming, but with the right knowledge and preparation, you’ll be set for success. Are you ready to make your dream home a reality? Let’s chat.
This week in Johnson County there were 1252 active listings, and 1089 listings went under contract (Source: Heartland MLS, October 30, 2023).
About Maggie
Maggie is a ReeceNichols real estate agent and a third-generation realtor. It’s her passion to provide a professional and positive buying and selling experience to her clients. Maggie has been featured in Realtor.com, Apartment Therapy and in other publications. https://maggief.reecenichols.com/
Follow her on Instagram and Facebook for updates on the local market.
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