When people buy a home in Destin or South Walton, Florida , particularly if they’re first-time home buyers, they are frequently unaware of all the costs involved in purchasing a Gulf Coast home. Buyers who have carefully budgeted for their down payment and monthly mortgage payments may find themselves strained financially if they neglect to account for the added expense of points, mortgage insurance, appraisal, home inspection and other necessary closing activities and costs.
When Destin home buyers work with an experienced Gulf Coast real estate agent , their agent will provide them with a fairly good estimate of the closing costs they will be required to pay. This allows home buyers to factor those costs into their home-buying budget before they start shopping for a primary residence or vacation home on Florida’s famed Emerald Coast.
The following is a rundown of the typical closing costs associated with the purchase of a home or condominium in Destin or South Walton, Florida.
· When you start reviewing your budget in preparation for purchasing a Destin condominium or South Walton beach house, you should check your credit report and score [https://www.annualcreditreport.com/cra/index.jsp]. Your bank will use this information to determine the amount and terms of your mortgage.
· Most buyers should expect to make a down payment of 20% of the purchase price.
· Buyers should also expect to pay a loan origination fee and points which are up-front interest fees that can reduce your loan interest rate by 1.8%.
· A home inspection (typically $300 to $500) protects both buyer and seller from unseen and unknown structural and mechanical problems with the home.
· An appraisal will be required by the mortgage company to verify the market value of the home and determine the maximum amount of the loan.
· Most banks also require that buyers purchase private mortgage insurance if the loan amount is more than 80% of the home’s market value.