How Much Does It Cost To Buy A House in Crestview

So, you're moving to the sunny beaches of the Florida pan handle, and you're ready to buy a house. Congratulations! This is a big step in your financial future, but how much money will you actually need to buy your new home? Well, hang with me for just a few minutes, because that's what I'm gonna be discussing right now.

Hey everybody, welcome back to my channel. I'm Jodie Cordell, the Savvy Agent with Spence Properties right here in Crestview, Florida. And today I'm going to be sharing with you some expenses that you should expect when you get ready to buy your new home. If this is your first time here, be sure to hit that little subscribe button down in the bottom corner, and don't forget to hit the little bell, because that's how you're gonna get a notification every time I put out a new video. I publish a new video every Wednesday, so be sure to come back next week for some more awesome content about all things real estate on the Emerald Coast.

Now, let's get into it. Well, the most obvious expense when buying a new home is your down payment. In today's market, your down payment should generally run about 10 to 15% of your home price. For many first time home buyers, this is a difficult first hurdle. So you may want to look into different loan types that don't require such a hefty down payment. An FHA loan usually only needs one to 3% down, and if you're lucky enough to qualify for a VA loan, which we have a lot of those in this area, you can get a fully financed loan for your first and even your second home with zero down payment. Also, keep in mind that there are other programs to help home buyers with their down payments that you can also consider.

The next expense to consider is your mortgage. Unless you're paying for your home in cash, you're going to have to figure out how much you can actually handle each month to pay on your mortgage. You can use an online mortgage calculator to determine what amount is most comfortable for you and your family.

One of the other fees that most first time home buyers are surprised by is closing costs. Closing costs include lender fees paid at the time of closing on a real estate transaction. They generally include several one time fees such as an appraisal fee, the survey fee, origination fees, possibly discount points, title insurance and other similar fees. These fees can range between 1% to 5% of your actual loan mortgage amount. So if you're buying a home for say around $250,000 you should be aware that your closing costs could be as high as $12,500.

There are other fees associated with the home that you'll need to be aware of as well. You should research property taxes on your home, and you'll be responsible for paying them at the end of the year. This is definitely a subject to discuss with your realtor. Your realtor can give you a lot of insight on what you can expect to pay and what fluctuations you might see.

Homeowners insurance and some hazard insurance like flood insurance are mandatory for all mortgages. You can possibly save some money here if you bundle your homeowners with your auto insurance policy.

Private mortgage insurance is another fee you might have to deal with. If you don't pay at least 20% down on your mortgage, then you're expected to pay private mortgage insurance or PMI of up to 2% of your loan amount each year.

Then you may also have to consider HOA fees or co-op or condo fees. If you buying into a planned development with a homeowners association, then you're gonna need to find out how much their monthly assessment is. You'll pay this amount on top of your mortgage each month, so you definitely want to factor this fee into your planned expenses. Those fees can cover a lot of things such as maintaining the facilities like if you have a pool or landscaping in the common areas, and even sometimes certain utilities. Condos and co-ops have similar fees, and some of these assessments can be pretty pricey, so make sure that you pay careful attention to those.

And lastly, you'll have to consider the real estate agent commission. Not that you're gonna need to pay for that. As a buyer, you won't be responsible for the realtor's commission. Agent commissions are generally around 6% of the home purchase price, and it's shared between the sellers agent and the buyer's agent. The commission paid comes out of the seller's profits from the sale of the home.

The truth is, buying a home is expensive, but there's so many programs to help first time home buyers get into their first home. And if there's one thing I can share it would be I wish we had started sooner, because the most important and best reason to buy a home is equity. Once you start to invest in your first home, you'll begin to build equity in it. And that's gonna help you when you go to sell your home and buy another one, or you can borrow against the equity for other projects or even invest in more real estate. The possibilities are truly endless, but you have to start.

I hope this helps you plan for your home buying experience. If you do have any other questions about buying or selling real estate, please feel free to reach out to me. Go ahead and drop your questions down in the comments below. And if you are considering buying your first home here on the Emerald Coast, be sure to grab a copy of my free home buyers guide. You just click the link in the description underneath this video. I hope you enjoyed this content, and if you did, be sure to give me a thumbs up! Thank you so much for watching my video. Again, my name is Jodie Cordell. I'm the Savvy Agent with Spence Properties here in Crestview, Florida, and I will see you on the next video.

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