The SELLER pays:
• Real Estate Commission
• Any outstanding Utility or Sanitation Fees
• Pro-rated taxes due on date of sale
• Full payoff of all loans and/ or Liens of the conveyed propety: outstanding mortgages, interest, prepayment penalties, Tax Liens, Workman Liens, delinquent and/or pro-rated Homeowners or Condo Association fees, etc.
The SELLER and BUYER NEGOTIATE to pay:
• Part or All of Closing Costs
• Home Warranty
• Issues that arise from Inspections
The BUYER pays:
• Inspection cost (Paid outside of closing)
• Appraisal (Paid outside of closing)
• 1 year Home Owners Insurance Policy
• Lender Title Insurance
• Owner Title Insurance
• Pro-rated taxes due on date of sale
• Any Homeowner/Condo Association Fees Due
• Closing Cost of obtaining a loan (usually 3% to 4% of the loan amount)
-Origination, Credit report, Mortgage Broker, Admin, Courier, Processing, Document Prep, Underwriting, Georgia Residential Mortgage loan, Flood Certification, etc.
PLAN TO SPEND
3 to 20% of purchase price for DOWN PAYMENT.
The actual amount depends on what kind of loan you get and how good your credit is. Your bank might offer a zero-down loan, but if you can afford to make a down payment, you should do so, because you’ll get a lower interest rate and because your monthly payments will be lower.
1 to 8% of purchase price for CLOSING COSTS.
You might not have to pay this up front. The bank might be willing to add it to your mortgage. (Add them to the mortgage if you need the cash, but pay the closing costs up front if you don’t.) The actual amount of closing costs depends on how good a deal your lender is willing to give you, and the price of the house.
Miscellaneous Costs ($250 to $800): application fee for loan, the fee for credit report, professional inspection of home, and an appraisal (if you can’t get the appraisal added to the closing costs).
WHAT YOU NEED TO PAY PRIOR TO CLOSING:
Earnest money is essentially “good faith” money that’s paid by the buyer to be held in escrow until closing. The buyer’s offer of ernest money typically paid as a way of letting the seller know the buyer is serious about making an offer. The amount of earnest money varies and is typically reflective of the buyer’s interest in the property. Buyers may have a better chance of securing a contract with the seller by making a strong offer of earnest money and must pay earnest money upon execution of the contract. The funds are typically paid with a personal check or cashier’s check and typically cashed immediately.
Upon closing, the earnest money is credited towards the buyer’s total move-in costs (down payment and closing costs). If the contract is terminated by either party, the earnest money is disbursed based on the contract.
Although a home inspection is not required, it is highly recommended. The cost for home inspections vary from one inspector to the next.
The home inspection is typically done within the first few days after execution of a contract within the option period. Performing the inspection during the option period insures the buyer will be able to exercise their unrestricted right to terminate the contract in case a problem with the home is discovered by the inspector and the seller is unwilling to correct the problem. The inspector will typically require their fee to be paid at the time of the inspection.
An appraisal is typically required by the lender to determine a professional opinion of the market value of a property.Most lenders require full payment of the appraisal prior to it being ordered. Lenders will typically not order the appraisal until the home inspection has been performed and the option period has expired to avoid wasting money in case the buyer decides to terminate the contract within the option period. Apprasials generally cost a few hundred dollars but can be more for larger homes.