When you are buying a Santa Clarita home, even if you are a veteran and have access to one of those zero down payment loans, you still need some money to buy a home.
If you are needing to borrow money to buy a home, you will have to pay certain costs that are a buyer's responsibility.
The sellers of homes have costs to pay also - home sellers have to pay their part of the escrow fees. The sellers of real estate have to pay for their part of the title insurance fees. The sellers of real estate have to pay for both agents. The agent who is representing them (the seller), and the agent you are hiring to represent you.
An important thing that you should have noticed is that you don't pay me anything to help you buy a home. You don't pay me to be your representative on your side 100%. The sellers have their own agent who is, or should be, on the seller's side 100%. You need your own agent who is on your side and who is not in contract with the seller.
If you are a buyer who wants to buy a new home, the new home builder also allows me to represent you at no cost to you. That is also a good practice. To have your own agent when buying a new home, the new home seller has their experienced and knowledgeable agent, you need yours too.
Buyer Costs: Deposit, which used to be a handshake between the seller and the buyer. Stating that a deal has been struck and agreed upon. This can be as high or higher than 3% of the offering price. Typically in the range of 5k to 15k within the Santa Clarita real estate venue.
If you cancel before removing your contingencies*, the deposit is supposed to be returned to you in full. There are some escrow companies who have a document they make buyers sign that a portion of their deposit will be retained by the escrow company upon cancellation by the home buyer for work completed. (I'm not a fan of this, so I don't want my buyer signing anything without my knowledge) Read everything, it's important.
*FYI, cancellation seems straight forward but can be tricky. We talk more about this prospect with our clients. Even though the contract says the buyer's deposit to be returned, the seller needs to agree. Some sellers refuse and lawyer up, for example.
Inspection Fees: After the offer is accepted, there are three mandatory things that a home buyer needs to pay out of pocket at the time services are rendered, or before.
The home inspector, the termite inspector, the appraiser. These fees will not be returned if the buyer cancels the transaction. Size and complexity is the variable in the inspection costs. Home inspections are somewhere around $500.00, Termite inspectors are around $100.00 and the appraisal fee is usually $500-700 dollars.
Buyer Closing Costs: Estimated <3% of the purchase price
Lender Fees - If you are needing to borrow money to buy a home, you are going to be paying your lender to get you the loan. Some lenders are super expensive, for no good reason. Some lenders are exceptionally cheap for bad reasons :) - It's one of my positions to educate my clients as to what is are good deals and reputable lender traits.
The lender fees can also include other "costs" like if a home buyer is using a VA or FHA loan it will typically be impounded. Meaning the financial organization where you have your loan is going to pay your home insurance and your property taxes, to be included as part of your mortgage payment. In this case, upfront, to have an impounded mortgage, you will be required to pay a year's worth of insurance and 6 months' worth of taxes. Hence, closing costs being higher with impounded-type loans.
Buyer's part of the escrow fee - The seller has their part, the buyer assumes some of this cost, typically.
Buyer's part of the title insurance fee - The seller has their part, the buyer assumes some of this cost, typically.
Money to close escrow:
This is going to include your down payment, which will have been agreed upon during your lender decision and other negotiations as to what program you are going to use. This down payment can be as little as zero to >20% down.
What if the home inspector finds something like mold? That may require, if the buyer wants, to hire a mold inspector. If the home inspector points out issues he found with the roof, that may require the home buyer to hire a roof inspector. These are choices that a home buyer has. They can hire those inspectors, accept the property as is, or cancel the transaction. Just make sure you know all the potential consequences of each action before pulling the trigger.
I'm Connor and I'm here for you. Call me and I will be your advocate when it comes to buying Santa Clarita or other Southern California real estate.