Should You Really Pay Closing Costs as a Buyer?

Ah, we arrive again at buying a home. It’s a pretty big decision, so it makes sense to research just about every angle of the transaction as it comes to light. You might think that you’re actually pretty prepared — after all, you have the down payment, and you’ve found that the mortgage will fit into your budget. Does it mean that you have nothing else to think about? Absolutely not!

For example, you really need to think about the closing costs involved with purchasing a place. The closing costs are the list of expenses that buyers will need to pay at the time of the sale. There’s a long list of expenses, and if you’re not prepared for them they can really sneak up on you. The last thing that you want to do is finally go through all of the different stages of buying a home to get stalled out at closing. It’s a seller’s nightmare too, because they’re hoping that the closing goes as smoothly as possible. When you’re thinking about purchasing a house, you have to remember that the seller is hoping that you will be able to make the house a home very, very soon — which is a good thing, because this opens the field for negotiation.

Negotiation? Of course — you will be able to negotiate a bit more as long as you’re really willing to think about all angles of the problem. At the core of every transaction is a buyer and a seller, right? So if there’s any snags in the process, they need to be closed quickly.

Now, you might be able to get the seller to finance some of the closing costs for you — that can be put out in the purchase agreement. If the seller really wants to make sure that they are going to get the closing underway, they might do this for you. However, what you can also do is roll the closing costs into the loan.

Now, the best way to go about this is if you haven’t used your maximum loan limit on the house itself. If you have some wiggle room, you can indeed just add the closing costs to the loan itself. However, you have to realize that this is going to require more money on your monthly payments and plan accordingly — that’s the best way to go, if you’re going to go down this road.

Finding your perfect home

Buying a home is a big step in anyone’s life, but finding that perfect home isn’t quite as easy as it seems on paper and there are lots of steps involved in the process.

First of all, there’s the financial side of things. With the banks and lenders still feeling the effects of the recession, lending criteria is still strict, so you’ll need a deposit that is quite high. This will of course vary, depending on your circumstance and the value of the property you want to buy, but the chances are that you’ll be putting a large dent in your bank balance.

Then, of course, there are the additional costs of surveys and estate agents fees. If you decide not to buy a property, it’s not possible to reclaim these costs, so you could find yourself out of pocket, even without finding your perfect home. There’s no doubt about it; moving house can be a costly business, but that’s not the only hard part.

In reality, the hardest part is actually finding a house that is right for you. There are plenty of options out there but narrowing them down can be quite tricky. First of all you have to decide on the area, or areas, where you want to live and then decide on how many bedrooms you want, whether or not you want a garden plus all of the other extras. Once you know what you want, then you have the tricky part; tracking down the right property.

The internet has taken out a lot of the leg work, there’s no need to traipse around estate agents every Saturday morning, you can now find properties conveniently placed on one site. Comparison sites bring together houses and flats from various different estate agents, which makes everything a little bit easier to see and you can narrow down your choices using their search options.

So, rather than searching individual estate agents sites to try and find the right property, use the internet to your advantage and let property sites do all the hard work for you. You can even set up email alerts, so any new properties that meet your criteria are sent directly to your inbox.