Whether you’re buying your dream piece of Palm Desert real estate or investing in a vacation home, there are many costs that you may not be aware of or forget about in the excitement of purchasing a new property. Here are a few things to remember so that the expenses of buying a home don’t shock you when they start adding up.
There are more costs associated with buying a home than your down payment, mortgage rates and tax payments. Once your loan is approved, there are other costs you will need to cover before you get the keys to your new abode. You’ll need to pay your agent or realtor fees and most likely want to hire an attorney to review and approve all the paperwork associated with the transaction. If your dream piece of Palm Desert real estate is a condominium or gated community, you’ll want to find out how much the Homeowners Association (HOA) fees will be so you can factor that into the equation.
Another important item to remember is Homeowner’s Insurance, which is necessary to obtain a mortgage. This type of insurance will cover your property and contents, though a standard policy won’t typically cover natural disasters such as earthquakes, floods,tornadoes and hurricanes. If you live in an area that is at risk for any of these type of disasters, you may want to take out an additional policy.
Depending on the size of the down payment you made on the property, you may have to obtain Private Mortgage Insurance (PMI) and Title Insurance. PMI is required when your down payment is less than 20 percent of the purchase price and is designed to protect your lender in case you default on your loan. Title Insurance protects you and the lender in the case of an unusual circumstance where another party tries to lay claim to the title and your property.
Image Credit: trulia.com
More
..Don’t forget to sign and return all your docs!
Buyers and Sellers of ALL properties here in the Palm Springs Valley-return all of your documents! Whether it’s a Short Sale, Foreclosure, or equity Sale, there always seems to be a “few missed.”
A word of caution to Buyers and Sellers alike…please review your docs carefully and return them all. Docusign helps dramatically, but as the deal moves forward, there are going to be disclosures coming from the other side, negotiations on Repairs and credits, Pest results and potential negotiations..really, on and on.
Read your documents slowly, review them carefully, call with any questions, sign and date every single place indicated (I always put large arrows so you cannot miss them.), and return them all together when possible as it is then easier to track what you have signed and returned. If a signature/date place is missed, it will be returned. Not a panic, but a time waster.
With so many of my Sales coming from out of towners, it is really critical to slow down, ask questions, then take your time signing/dating the docs. Most importantly? Return them! Always call with ANY questions, then follow up and return all the docs. If you delay, you may misplace something and then when the clock is ticking down, the pressure intensifies..who needs that?
More
La Quinta Buyers..do you qualify for a mortgage with a 3 in front of it???
You too could qualify for a mortgage rate with a 3 in front of it. Refinance? Same thing. This is a very enlightening article from today’s New York Times talking about a young couple that did just that. Huge documentation will be required of course, but that’s true with ANY mortgage or refi.
The keys are…
1. Your Credit score..it needs to be in the 700’s minimum.
2. Money in the bank..prove you can cover a couple months’ payments.
3. Job Security..prove you’ve got a good job that seems secure
4. Other assets? The more cash, or paid off assets..the higher your odds.
The appraisals are starting to come in where they should here in the Palm Springs Valley, so if you’re qualified, why not give it a go? Of course..the paperwork will be equal to that of a Short Sale, so have your docs in order!
More
