I have now joined the millions of Americans in living part of the American dream – I’m buying a house! Though we have only been in North Carolina a few weeks, after our 2nd outing of looking at houses, we find the one. The goal of the first house purchase was that it should be a good investment and have great re-sale value. This house met all our criteria:
- 3 bedroom
- 2 Bath
- 1 car garage
- In the best school district
- In a hot subdivision
- In our price range
. . . and most importantly, we loved it!
Here are a few pictures of the house
Buying the house is the easy part. Now begins the process of applying for a loan, getting a house inspection, a termite inspection, a property survey, creating a rapairs list, doing a final walk through, and then meeting with all parties (buyer agent, seller agent, and lawyers) to sign 97,000 documents to officially own the house.
This week, I went around different banks and lending institutions to compare programs and rates. I created a rather elaborate workbook to analyze all my options (Note: I am going to post the workbook once I clean it up a bit and add some more automated calculations). After I calculated which program was best for me, I called the bank and said ‘Let’s do it’. I gave them all the personal information they needed over the phone, however, that’s just the beginning. Yesterday, I received a package from the bank requesting EVERYTHING (W-2’s, bank statements, retirement account numbers, employment history, proof of employment, my zodiac sign, etc.). On top of that, I have to get house insurance before I even buy the house.
Today, we did a walkthrough the house with our buyer agent and the house inspector. Though not required to buy a house or borrow money, it is highly recommended to get a house inspection. This person was very thorough and pointed a few key issues that a regular person (namely myself) would not find.
So, what are the costs of buying a house? Well, a lot more than one would think, and the costs are just starting. The running tally as of today:
- Buyer’s Agent: FREE If you’re buying a house, get a buyer’s agent. Absolutely no reason not to. They are helpful, know the area, can give you guidance, and they cost you NOTHING.
- House Inspection: $315
Costs still to incur:
- Termite inspection
- Lawyer fees
- Hazard, house, and tax insurance
- Closing costs
- More to come . . .