You’ve saved for years to purchase your first Lake Ozark home. Interest rates hover just above 4% for a 30-year fixed-rate mortgage. Your credit is on track. And now you’ve got enough for your down payment. So, how much does it really cost to buy a Lake Ozark home? Well, you’re going to need more than just a down payment to cover all your expenses.
Buying a Lake Ozark Home: What You Pay For
After you’ve got your down payment together (including your earnest money deposit), you’re going to need a home inspection. This ranges anywhere from $300 to $500 and will be paid upfront by you directly to the inspector’s company. You don’t want to skip this. Even newly constructed Lake Ozark homes can come with problems. A home inspection will help point out potential issues. If the issues are too big, you may want to rethink buying the property. Or, you could negotiate the costs to fix them into the sale price. Your Lake Ozark REALTOR@ might be able to recommend an inspector to you.
At the time of closing, you’re going to have to pay all the fees involved in processing your real estate transaction. These include title fees, tax payments, attorney fees, origination fees, recording fees, insurance, and home warranty costs. These vary depending on your final sale price as well as what companies are used for the transaction. Typically, you should expect to pay 2%-5% of your Lake Ozark home’s sale price. For example, if you pay $200,000 for your home, your closing costs could run between $4,000 to $10,000. It wouldn’t hurt to err on the side of caution and have 5% saved in addition to your down payment.
Miscellaneous Related Costs
Are you hiring a moving company to help you once your sale is final? Do you want to purchase furnishings and/or appliances for your new home? Are there any other alterations you wish to make once you take ownership? Even if you don’t hire professionals, moving still incurs some costs (boxes, tape, bubble wrap, truck rental, etc). You may want to include these costs in your savings budget. Otherwise, they will have to wait.
As you can see, there is more to buying a Lake Ozark home than saving for a down payment. Other costs need to be factored into your budget. But don’t be deterred. You may not need to have as much of a down payment as you originally thought. Of course, that depends on what kind of loan you end up utilizing. Talk to your bank to find out what options are available to you. And, feel free to contact us if you have any questions.