Whether you’re a first time or experience homebuyer, there are out-of-pocket costs on top of the down payment when you close a real estate transaction. The purpose of these expenses is to protect your new home and ownership title. You found a home in Treasure Valley, you got the mortgage pre-approved and now you need to complete the transaction of a luxury residence that may take 30—90 days to close. It happens with the help of your team comprised of the real estate agent, mortgage lender, Title Company and a walk-through inspection company.
Before finalizing the loan, mortgage lenders need to know the worth of the real estate is equal or greater than the loan. A home inspection supports it. You have two choices; negotiate the inspection cost with the seller as part of the buying offer or add the cost to your home buying budget. Home inspections identify any unseen problems in your new home. Depending on the age, size and condition of the home, the inspection could cost $200 – $2000.
Property Taxes and Homeowners Associations
Living in a planned luxury community comes with a price. In Boise, Idaho, the average property assessment is calculated on fair market value each year. Depending on the time of year you buy your home, you may owe the sellers for property taxes previously paid. The same applies to fees paid to the homeowners associations (HOA).
Private Mortgage Insurance
If your down payment is less than twenty percent, the lender requires private mortgage insurance (PMI). They will add the cost into the mortgage loan, increasing your payment. PMI protects the lender if you default on the loan. This is not homeowners insurance –you need to purchase a separate policy.
These fees cover the credit verifications for the lender; legal filing of the property transfer from the seller to the buyer and a notary witnessing the transfer. In Boise, buyers and sellers split escrow costs and negotiate who pays the title insurance. Title insurance protects the buyer and lender in case there are past ownership claims on the property. The fees are added to the loan.
Treasure Valley is attracting residents with a desire for urban living to Boise, Idaho. Today, there is a high demand for luxury homes in these neighborhoods. If you’ve been looking for a community where young families and professionals are focused on living well – this is it.