Whether you’re moving up the street or across the country, there are some things you should know about the moving process.
Moving can be costly. Besides the costs associated with physically moving, buying a new house and selling your old house is a big financial decision. If you’re considering buying a new home, there is a lot to think about, which is why we made this First-Time Homebuyer’s Checklist.
Buying a home is a big investment. From a down payment to closing costs, you usually need some cash upfront when you’re ready to become a homeowner.
Closing costs include things like property taxes, homeowner’s insurance, title search fees, and appraisal fees. They also pay people who’ve performed services throughout your loan process, like your real estate agent and home appraiser. You may be asked to pay some of your closing costs as the action happens, for example, you may have to pay for the home inspection upon inspection. That amount will be subtracted from your total closing costs.
As the buyer, you may be able to negotiate with the seller in your offer as to who covers closing costs. Each loan type has different guidelines when it comes to seller contributions to closing costs.
Most likely, you’ll also have to make a down payment. Traditionally, conventional loans require a 20% down payment. So, for a house that’s $150,000, a 20% down payment would be $30,000. There are some loan options that offer low and no down payment options, like the FHA loan, for example, which only requires a 3.5% down payment. That would be $5,250 for a $150,000 house. Each loan type has different requirements and guidelines, so talk with your lender. Your mortgage banker will be able to talk you through your options and guide you toward what’s right for you.
If you’re moving close by, your move may be a little simpler. You can make multiple trips, and if you’re lucky, move a little bit at a time. However, if you’re moving cities or even states, you may have a little more work to do, most likely in one trip.
Consider the costs of renting a moving truck, gas, hiring movers (both in packing and unpacking the truck), and supplies. You may also need temporary lodging and storage for your things, depending on your moving timeline and when you’re required to be out of your old house or apartment. You should factor all of these potential costs into your budget.
Moving can be stressful, but it doesn’t have to be. Once you have your finances in order, follow these helpful tips to make your move as seamless as possible.
Following these tips can help to ensure a smooth and easy moving process. For more helpful homeownership tips and tricks, plus advice on mortgage loans and financing, visit the Atlantic Bay blog.