Today, we are going to discuss the other costs affiliated with purchasing a home. If you find yourself looking to buy a home currently, then listen up! Besides the costs of your mortgage and CT homeowner insurance, there’s some other costs that you need to not only be aware of, but be prepared for as well:
Representation: Having an agent present while going through the process of purchasing a home can be a very valuable resource. They have the answers to your questions and the resources you may need to close out the deal.
Down Payments: Ah, the down payment, how you have fooled so many. While the craziness of sub-prime lending is behind us, down payments now play an increasingly significant role in the purchase process. While some of us think that 20% of the total cost is required, it’s often not that high. But still it is significant and you need to analyze your finances to see if you have that type of liquidity.
And EMD: A What? It’s called an “Earnest Money Deposit” and it’s basically a way to entice a seller into accepting your bid price. The offer you give to the selling party is accompanied by an EMD, so for instance the down payment of $20,000 may include a $5,000 EMD, meaning you’d only have to provide the difference ($15,000) at closing.
Any more questions? Give the team at Paradiso Insurance a call today! (860) 684- 5270