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"Closing costs" is a confusing term. Depending upon who you're talking to, it can encompass various monies which will be required of a buyer in order to get up from a closing table with a new set of keys (hopefully with a
Heritage Real Estate keyring attached). There are numerous charges and fees involved and buyers frequently get the terms mixed up. More often than not, neither lenders nor Realtors thoroughly and clearly explain things to the buyer.
Firstly, there is a difference between "closing costs" and "down payment," something first-time buyers frequently misunderstand. I recently had a deal go south because the buyer's agent didn't bother to explain to him that "zero down" didn't mean there were no costs involved. Imagine his surprise when, two weeks into our contract, he learned he had to come up with $4,000 in closing costs.
Your "down paymen...
I was sitting in a local coffee shop with a nice, young couple giving them my crash course in first-time home buying; everything from loan pre-approval to the costs involved, to inspection contingencies and contract clauses.
They'd dated since high school, been engaged for a couple of years, were about to be married, and ready to start shopping for their first home. "Is there anything we need to know," he asked, "since we're not married yet?" It was an astute question.
A lot of things have changed about the real estate business since I got into it nearly 20 years ago, including the number of unmarried young people buying homes together. A surprisingly common scenario is one in which young, first-time home buyers have only been dating a few months and decide to save on rent and buy a house. Often, one of...
Bill Porter, Broker
(304) 612-3746
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