Buying VS Renting. Which is Better?
It has come to our attention that there are a lot of buyers out there that really do not know what their financial responsibilities are aka closing costs and prepaid expenses. Even after they have met with their lender you may still be confused. Hope this helps.
Prepaid items are items that do not have anything to do with the loan for example: Homeowners insurance (which you will need a full 12 months of plus 3 months for escrow), property taxes, inspections, mortgage interest, home association dues, mortgage insurance premiums and hazard insurance.
Your closing costs are your loan fees, points, appraisal fees, lender title policy, closing title fee for that policy, survey, recording fees and credit reports.
So when you are considering buying a home you need to know these costs and you need to know they are going to add up to around 5% of the purchase price in addition to your down payment on the loan. We have great lenders we work with and are happy to refer to a few.
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