Closing costs for buying a home. Fees and expenses
If you are thinking about buying a home in Pacific Beach you will need to know what expenses will come up throughout the home buying process. Buyers typically will need a down payment, closing costs and cash to cover other fees that come up. The information below provides estimates of the fees and closing costs for buying a home in Pacific Beach.
What are the average closing costs for buying a home in Pacific Beach?
Zillow estimates that an average buyer in the US will pay $3,700 in closing costs. Pacific Beach closing costs will be slightly higher, because these fees are based off of the purchase price of the home, and Pacific Beach home prices are higher than the US average.
In my experience, buyers using a loan will pay around $6,500 in closing costs, and buyers not using a loan will pay around $3,500.
While the loan origination fee is usually between $1,000 – $2,000, having a loan will also require a buyer to purchase lender’s title insurance (usually around $1,000 – $2,000 – it depends on the size of the loan), an appraisal (around $600) and other miscellaneous fees for transferring loan documents and processing.
What fees are involved when buying a home in Pacific Beach?
Closing costs can be negotiated into the purchase contract to be paid for by a Seller credit. However, it is more common that the buyer will pay for some, if not all of the closing costs with their own money. It’s important to understand what expenses will come up when purchasing a home other than the purchase price and down payment.
Escrow is a third party that transfers information between the buyer and seller and helps you complete the purchase of your new home.
A typical escrow fee will vary from company to company and is usually correlated to the purchase price of the property. An estimate for the escrow fee : $1,000 – $3,000.
The lender origination fee will vary from lender to lender but is approximately $1000 – $2,000.
Loans with less than a 20% down payment
If you are not putting 20% down on a property, you will be required to purchase mortgage insurance, which will have additional fees. The lender may also require you to pay future property taxes up front.
Buyers using a loan will typically purchase lender’s title insurance that will cost approximately $550 – $2,000 depending on the size of the loan.
Inspection costs will vary from property to property with size being the biggest differentiator. Typical general inspection fees will be between $350 – $800
It’s important to know that the general inspector may find additional issues which require additional specialist inspections, like HVAC, roofers and plumbers. Some of these specialists will come to the home to give you a quote for free, but others, like environmental and structural engineers, may charge a fee in excess of several thousand dollars.
The lender usually requires an appraisal and their fee is around $600.
You will want to get estimates from multiple moving companies. Or ask those amazing friends with trucks if they can help. They will probably hate you forever but the savings could be worth it.
Estimated costs will obviously depend on how much and what type of furniture you are moving, and how far. So somewhere between Beer + pizza + gas money, up to $5,000 or more.
Remodeling and new furniture expenses
This is optional, but something you may want to consider when purchasing a new home
I’m not going to estimate the cost here because it could range between a can of new paint and a complete rebuild of the property.
When do buyers pay closing costs for buying a home?
Closing costs are paid at the close of escrow.
Typically escrow will take 30-45 days to close (when a transaction is completed). So, the buyer will be expected to wire their portion of the funds into escrow a day or two (or possibly earlier if the buyer wants) before the close of escrow.
If you have any additional questions about fees and closing costs for buying a home, please contact us.View homes for sale in Pacific Beach