Are You Buying a Home in Gloucester County? | Money, What Money I am Financing 100%!

Are You Buying a Home in Gloucester County? | Money, What Money I am Financing 100%!

Gloucester County RealtorThere seems to be a misconception that 100% financing loans means buyers do not need any funds to buy their dream home. This is certainly not the case. Although, you will not need money for a down payment and potentially the seller can pay your costs, there are still other areas in which the money will come directly from the buyer. Below is a list of costs buyers should be prepared for when entering into a contract to purchase a home.

1. Good Faith Deposit. This deposit will range anywhere from $1000.00 and above depending on the price of the home you are purchasing. This money is presented to the seller’s agent at the time the buyer signs the contracts. This money is then held in an escrow account by the brokerage firm representing the seller. This money is credited back to the buyer at settlement.

2. Home Inspection. A home inspection typically runs in the ballpark of $350.00 to $650.00 depending on the size of the home. A home inspection is not required to purchase a home, but is highly recommended. A home is the largest purchase most people will make in a lifetime. Such a large purchase being made without having a professional inspect the home can turn out to be quite costly or even worse inhabitable. Information supplied by a good home inspector is priceless.

3. Termite Inspection. A termite inspection will cost between $60.00 to $100.00 depending on the company you choose. A termite certification is required by most lenders depending on the type of loan you are utilizing. A termite inspector will inspect the property to check for active/live termites and will also check to see if there is any previous damage due to termites. If termite activity is found a termite treatment may be required and any damaged wood may have to be replaced prior to settlement.

4. Septic Inspection. A septic inspection will cost between $400.00 and 600.00 depending on the company you use. Homes with well and septic systems should have these systems inspected prior to settlement. Most lenders will require a well and septic system certification. Most contracts in Southern New Jersey stipulate that the buyers are responsible to pay to have the septic system inspected. The sellers are typically responsible to have the well water tested. Be sure to read your contract and ask your agent if this is true for your situation.

5. Appraisal. A typical appraisal will cost around $375.00 for a single family home. Your mortgage company will require an appraisal to be done on the property to ensure the home value is consistant with the purchase price. You will be responsible for paying the appraiser before the appraisal will be done.

Even when opting for a zero down loan in New Jersey, you can see that you will still needs funds of yourown to purchase a home.

For more information on purchasing a home contact Andrea Kappre – 856-419-3560

Andrea Kappre is a Realtor in Gloucester County NJ, helping buyers and sellers to successfully accomplish their real estate goals.

Contact Andrea Kappre at 856-419-3560 or AndreaKappre@yahoo.com

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