Full Version: The true cost of buying a house?
We are looking into what sort of home we'll be able to afford once we move to the US, and I am wondering what the true cost of buying a home is over there (we'll likely be moving to NW Arkansas or maybe Colorado Springs if it matters). I am not talking moving costs and buying new furniture, but costs directly associated with the house purchase. For example, here in Ireland there is a tax called stamp duty of 7% of the purchase price of the house and also property tax, then you need a building survey which can cost 2000 or more, plus solicitors fees deed transfer costs etc etc, so that the true cost of buying a 250'000 dollar home can easily come to 275'000.
QUOTE(Penguin_ie @ Mar 16 2008, 03:08 PM) 
We are looking into what sort of home we'll be able to afford once we move to the US, and I am wondering what the true cost of buying a home is over there (we'll likely be moving to NW Arkansas or maybe Colorado Springs if it matters). I am not talking moving costs and buying new furniture, but costs directly associated with the house purchase. For example, here in Ireland there is a tax called stamp duty of 7% of the purchase price of the house and also property tax, then you need a building survey which can cost 2000 or more, plus solicitors fees deed transfer costs etc etc, so that the true cost of buying a 250'000 dollar home can easily come to 275'000.
Depends on how much down you can put (15%) and what kind of loan you qualify for. Will be 2000 and up....and more if you use a real estate agent...can get to 5000.
Use GOOGLE or check the FHA (for example) of closing costs....title search, title insurance, loan origination fees...prepayment of taxes...escrow costs.....its a long list but depends on how you qulaify and how you do it.
Thanks- we will use a realtor because we hope to buy before we fully move there (so we have a home to move to and also for domicile/ visa reasons); we are likely going to buy a house outright with savings and money from the sale of our Irish home.
Oh gosh. I was just in Colorado Springs last week and I LOVED it there!
Personally, I was SHOCKED at the closing costs here in the US. Very expensive. Depending upon the market, you might try negotiating them into the cost of the house, or adjusting your offer to take them into consideration. I honestly can't recall what ours were, but 6k keeps popping into my head.
Personally, I was SHOCKED at the closing costs here in the US. Very expensive. Depending upon the market, you might try negotiating them into the cost of the house, or adjusting your offer to take them into consideration. I honestly can't recall what ours were, but 6k keeps popping into my head.
Colorado Springs - or nearby Manitou Springs - is beautiful. I have friends there who I have visited and if I didn't live where I am now, would happily live there. One friend lived right next door to the Garden of the Gods in Manitou Springs - incredible! Enjoy your home-hunting.
QUOTE(Crikey! @ Mar 17 2008, 02:19 PM)
Personally, I was SHOCKED at the closing costs here in the US. Very expensive. Depending upon the market, you might try negotiating them into the cost of the house, or adjusting your offer to take them into consideration. I honestly can't recall what ours were, but 6k keeps popping into my head.
6k?!! Wow. Here in NL the costs to the buyer are around 10% of the house's asking price... 6k sounds like a dream!
When we bought our house last year we had the seller pay all our closing costs.....
Kez
Kez
When you buy its also best to have your property taxes paid in escrow etc, then you don't have a big tax bill at the end of the year. I think we paid around 2k for closing costs and the mortgage company pays our taxes at the end of the year so we don't have to worry finding that extra few k.
Good luck house hunting.
Good luck house hunting.
QUOTE(Jo1973 @ Mar 17 2008, 04:18 PM)
When you buy its also best to have your property taxes paid in escrow etc, then you don't have a big tax bill at the end of the year. I think we paid around 2k for closing costs and the mortgage company pays our taxes at the end of the year so we don't have to worry finding that extra few k.
Good luck house hunting.
Good luck house hunting.
Most lenders will require this as a part of the loan...especially if you come in with less than 20% down.
Put down as much as possible....or else they will stick you with private mortgage insurace (PMI)....a high cost requirement that the lender will get his money back in case of default...once you are stuck with PMI is is almost impossible to get out of it even as your equity increases.
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