What are closing costs and how much is it? (real estate, insurance)

[nyc1986]

Lets say we're buying a home for 100k outright, how much would it cost is in NJ from beginning to end.
I know an appraiser personally so I wouldent need that part but what are/how much are "closing costs," inspections, lawyer fees, my agent's fees, taxes? Anything else that might pop up in the process when buying a home?
I've been trying to research it but it goes state by state and I cant find a direct answer. Plus we really need to know so that we can budget everything and make sure we still have some left over for appliances and other such needs.
BTW this is for 07302 if it matters
Thanks!

[Goldendoodle1969]

Originally Posted by nyc1986

Lets say we're buying a home for 100k outright, how much would it cost is in NJ from beginning to end.
I know an appraiser personally so I wouldent need that part but what are/how much are "closing costs," inspections, lawyer fees, my agent's fees, taxes? Anything else that might pop up in the process when buying a home?
I've been trying to research it but it goes state by state and I cant find a direct answer. Plus we really need to know so that we can budget everything and make sure we still have some left over for appliances and other such needs.
BTW this is for 07302 if it matters
Thanks!

3%-5% of the purchase price.

[nyc1986]

Thanks,
I downloaded a book "home buying for dummies" and it went over the costs. Thankfully i'm not taking a mortgage. Did you know that if you took out a loan for a 120k home, a 15 yr mortgage would have you paying 74k in interest while a 30 yr mortgage will have you pay 124k?
Home inspection is around $400, depending on the size of your home. Lawyer= around a thousand. Title search, $300 maybe? 1k in "earnest deposit" which could be deducted from the purchase price. All around, comes out to around 2-3k for a 100k home

[rscalzo]

Home inspection is around $400

Don't skimp in this area or you could be buying a nightmare.

a 15 yr mortgage would have you paying 74k in interest while a 30 yr mortgage will have you pay 124k?

You have to factor in the tax write offs you would get from those costs. In the past the overall cost would have to be balanced against any income from investing that money. In today's short term, it probably would be little. You also have to balance it against a having funds available for any other unexpected costs involved in owning a home. Don't cut yourself short. Major expenses can come up in a heartbeat.

120k home, a 15 yr mortgage would have you paying 74k in interest while a 30 yr mortgage will have you pay 124k?

I don't know where you got those numbers from but unless you are paying a high interest rate, you are higher that normal,. A 15 year mortgage would incur about 33K in interest less the write off. A 30 year would be about 92K. less the write off.

[resnj]

I paid for inspection approximately $400 10 years ago. Real estate closing fees are paid by the seller, not the buyer. Sorry cannot remember the lawyer fees.

[nyc1986]

Originally Posted by rscalzo

Don't skimp in this area or you could be buying a nightmare.



You have to factor in the tax write offs you would get from those costs. In the past the overall cost would have to be balanced against any income from investing that money. In today's short term, it probably would be little. You also have to balance it against a having funds available for any other unexpected costs involved in owning a home. Don't cut yourself short. Major expenses can come up in a heartbeat.



I don't know where you got those numbers from but unless you are paying a high interest rate, you are higher that normal,. A 15 year mortgage would incur about 33K in interest less the write off. A 30 year would be about 92K. less the write off.

Was reading through home buying for dummies. Theres no way around it, dont have 2 yrs of employment and my husbands credit sucks and I dont have enough credit history to even qualify for a mortgage.
I also heard the bush tax cuts are expiring, which includes write offs for interest rates on mortgages.
The only solution we have it to spend around 80% of our liquid to get a home. Husband is handy and has worked in carpentry for a while so he can do sheetrocking, taking walls down, electrical, minor stuff.
Hopefully nothing major would happen such as structural or water damage but wouldent insurance pay for that? (How much is home insurance now in days anyway) and how much do you think I could take off the LP just for being a cash buyer (assuming the house is 100k-3BR-yard no parking though)