Hey Y’all! Thinking about buying a home in our beautiful city of Savannah, GA, or one of our fabulous surrounding towns? Well, buckle up because there’s something important you need to know about: closing costs. They’re like those surprise fees that pop up at the end of your favorite online shopping spree, but for houses. Let’s dive into what they are and why they matter, Savannah-style.
Closing costs are the extra expenses you gotta cough up when you’re sealing the deal on your dream home. Here in Savannah, they typically run between 4% and 4.5% of the home’s selling price. Yeah, it’s a bit of a hit to the wallet, but don’t worry, we’ll get through this together.
Now, let’s talk about what exactly these costs cover:
- Loan Origination Fees: This is what the lender charges for getting your mortgage set up. It’s like the admin fee for joining a new club.
- Appraisal Fees: Before the bank gives you the green light for your mortgage, they wanna make sure the house is worth what you’re paying. So, they’ll send someone out to appraise it. In Savannah, this usually sets you back between $550 and $650.
- Title Insurance: Think of this as protection for your investment. It’s like a shield that guards against any legal surprises about who owns the house. Trust me, you want this.
- Home Inspection Fees: This one’s optional, but highly recommended. It’s like taking your car to the mechanic before you buy it – you wanna make sure everything’s running smoothly. Plus, it gives you a bargaining chip if there are any issues. This runs around $350 and is based on the size of the home.
- Attorney Fees: In Savannah, having a lawyer during the closing process is pretty standard. They’ll make sure all the paperwork is in order and that you’re not getting into any sticky situations. When you are borrowing the money, the attorney represents the lender. Expect to pay around $550 to $650 for their services.
- Mortgage Insurance: If you’re putting down less than 20% of the home’s price as a down payment, you’ll likely have to pay for mortgage insurance. It’s like a safety net for the lender, but it adds a little extra to your monthly payments.
And don’t forget about property taxes and insurance. These are usually prorated at closing, and you’ll often have to pay for a year’s worth of insurance upfront. Some lenders might even tuck away a few months’ worth of taxes and insurance payments as part of your closing costs, just to make things easier. These are your escrow funds that are included in your monthly payment, so the lender can send out your taxes and insurance every year. This way, you are paying them a little each month and not all at once at the end of the year.
So, there you have it, peeps! Closing costs might seem like a headache, but they’re just part of the game when it comes to buying a home in Savannah, GA. With a little planning and budgeting, you’ll be settling into your new digs in no time. Happy house hunting!
