HOME BUYING FEES
ESSENTIAL PURCHASING SECRET #7
QUESTION:Are you short of the cash required to
buy a home?
It might be to your advantage to take a look at some available HUD foreclosed
homes, as HUD will pay most of your closing costs. This newsletter will provide
specific details and information you should know.
- Origination Fee (1% of Mortgage)
- Appraisal Fee ($275 for 1 unit)
- Credit Report
- Closing Fee (For Lenders Closer)
- Attorney Fee (If no Closing Company)
- Title Insurance (Owners & Lenders)
- Title Search and Exam
- Flood Certification
- Plat Drawing
- Private Home Inspection ($200 Max)
- Mortgage Credit Certificate ($300 Max)
- ARM Endorsement Fee
- Mortgage Registration Tax
- Recording (County Charge Only)
- Conservation Fee
- Document Preparation Fee ($50 Max)
- Special Assessment Search
- Environmental Checklist
HUD offers some homes with FHA financing, and some without. The insurable
homes have different purchasing rules than non-FHA insurable homes. In addition,
investors and homeowners must follow different rules with HUD home buying, and
risk of losing earnest funds is applicable. Purchasers, who refuse to close a
HUD home transaction, lose all earnest money.
The actual amount of your closing costs is all HUD pays. As overages benefit
HUD, the amount any buy/bid contract offer, needs to be close and accurate. Case
in point, two thousand dollar balance remains after HUD has paid all closing
costs. In this example, there is a two thousand dollars forfeit by the buyer.
As you might have gathered from this newsletter, an error can have ramifications.
Use an agent with HUD home purchasing training to better your chance for success.
Overton Factor Articles
Information provided by this website is general and is not a substitute for professional
advice. Please consult your investment advisor and/or attorney before entering
into any transaction.