Don’t buy if you can’t stay put (at least for a little while).

Many people think buying a home is a prudent investment and for many it is.  However, not all homes appreciate at the rate the you see on programs such as “Flip This House”.  Buying is not for all people in all parts of the country.  If you can’t commit to remaining in one place for at least a five years, then owning may not be for you, at least not yet. One needs to factor in all of the costs of buying and selling a home. 

• Private mortgage insurance: If you only provide a small down payment, you may be required to purchase private mortgage insurance. Sometimes this means you are required to pay a full year’s worth at time of purchase, or it will be rolled into your monthly payment.
• Homeowner’s insurance: When borrowing money to purchase a home, insurance is required. In many cases, this means buying a policy before closing on the home.
• Title insurance: This insurance covers you in the unlikely case that the person who sold you the house didn’t actually own it or if information on the title was false.
• Appraisal fees: An appraisal is needed so that a current fair market value for your home can be established.
• Escrow fees: During the closing process, an escrow account will usually hold the money while the buyer and seller finalize the agreement. In addition, you’ll probably have a portion of your monthly mortgage payment go into escrow in order to pay for property taxes and insurance.
• Points or origination fees: An origination fee is paid to the bank or lender for their services in creating the loan. A point is 1 percent of the loan, and is often worked into the total cost of the loan.
• Credit report fees: In order to secure a loan, the lender will require a verified credit report.
• Document preparation fees: The lender or broker will usually have a fee to cover the preparation of the required documents for the loan.
• Survey fee: If an existing survey of the land cannot be obtained, a new survey will have to be conducted in order to determine exact boundaries of the property.
• Pest or mold inspection: The home may require an inspection for pests such as termites as well as mold. This requirement can vary by location.
• Property taxes: Always consider the property taxes.  In some areas the taxes can be substantial.
• State recording fees: Depending on where you live, there may be a fee required for recording and holding the information regarding the sale.

These are the fees associated with buying a home.  Remember there are also fees associated with the selling of a home as well.  With the transaction costs of buying and selling a home, you may end up losing money if you sell your home too soon.  To analysis your options call you local realtor or in The Woodlands, Texas contact Kristie at www.woodlandshomecentral.com.

Thank you for visiting Conversations with Kristie at Woodlands Home Central. If you are buying a home and you have questions about the real estate market in The Woodlands, Texas, you will find lots of useful information on this blog. If you are selling your home, and have questions or need information on staging your home, or if you have purchased your home and would like to have help with decorating your new space, you have come to the right place! Feel free to post comments or information that you have to share.