WHAT TO EXPECT...WHEN YOU'RE EXPECTING TO BUY


So, you've decided to stop renting and start making your monthly rent payments go toward your future. This is a smart decision, but also uncharted territory, and can feel overwhelming to some. Here is a guide to run you through the play-by-play, so you understand the process and feel in control. 
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PHASE OF THE HOME BUYING PROCESS


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Once your offer has been accepted, and you are under contract on a home, here are the costs you can expect to pay between the acceptance day and the first year of ownership.


THE RUNDOWN

CASH YOU WILL NEED DURING ESCROW 

  • 1%-3% of Purchase Price       Earnest Money        1-4 days In
  • $300-$800                                Home Inspection     Two Weeks In
  • 3%-20% of Purchase Price     Down Payment        During Closing
  • 3%-5% of Purchase Price       Closing Costs          During Closing


CASH YOU WILL NEED AFTER CLOSING

  • $200-$5,000                            Moving Expenses
  • Varies                                       Home Appliances and Furnishings
  • $500-$2,000/Year                    Homeowner's Insurance  
  • 0.5%/Year or 1%/Year             Property Taxes
  • Varies                                       Home Maintenance

SAMPLE TIMELINE FOR BUYING PROCESS



THE FIRST TWO WEEKS AFTER ACCEPTANCE - DUE DILIGENCE PERIOD


Often referred to as EARNEST MONEY. You have 4 days from the acceptance of your offer to deposit your earnest money with the title company. Expect to pay between 1-3% of the purchase price. But it can be as little as $500.








The HOME INSPECTION is paid for by you, either prior to inspection or billed to you. It is NOT part of the costing costs and cannot be rolled into the loan. Make sure your REALTOR® hires an experienced home inspector. You will want to read through the report to make sure you know what needs to be fixed, if you want to ask for any repair credits, or if you want to cancel the contract. Expect to pay between $300-$800, depending the square footage of the home.



THE THIRD WEEK AFTER ACCEPTANCE - FINANCE AND APPRAISAL PERIOD


   
HOMEOWNER'S INSURANCE is similar to Renter's Insurance. Depending on what type of home you buy, it can either be very similar in price to your renter's insurance or triple the premium. You will want to set this up before closing, and have coverage start the day of closing. Expect to pay between $500-$2,000 per year. 

On your closing date you will pay your DOWN PAYMENT. However, along with your down payment, you will also pay various closing costs to the title company and lender. CLOSING COSTS can be rolled into the home loan, if your offer price includes the estimated closing cost amount and the seller agrees to pay for the closing costs with this additional money that has been added to the purchase price. Expect to pay between 3-20% of the purchase price for your down payment. to pay between 3-5% of the purchase price for your closing costs. 

AFTER CLOSING - MOVE IN AND OWNERSHIP PERIOD



MOVING EXPENSES include such things as movers, moving trucks, boxes, dollies, tape, etc. --  I'm also including utilities setup in moving expenses. Expect to pay between $200-$5,000, depending on the utilities and their activation fees, and the degree of moving service you choose. 



PROPERTY TAXES are going to be the new expense for you, that you haven't dealt with while renting. Expect to pay around 0.5% of the purchase price per year, if it is a primary home. If it is a secondary home or investment property expect to pay 1% of the purchase price per year.



 HOME FURNISHINGS will also include refrigerators, washers and dryers, if these appliances were not a part of the contract. Also budget for any other home furnishings you will need in order to make your home, your home. Varies.



The U.S. average for HOME MAINTENANCE cost per year is $1,204. If your REALTOR® ordered you a home warranty, you will be covered for most items for a year or more, depending on the warranty. Make sure to set aside money each month so you are prepared for the unexpected, you can also extend the home warranty that your REALTOR® setup for you. Varies.

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*Please note that the numbers provided are only estimates, as a guide to help you determine what the cost will be for the particular home you are buying.



If you would like more information on current homes available in the St. George, Utah area, visit JanellaDAmoreHomes.com

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