NWR: Hidden costs of buying a house?

This is SUCH a good question. FH and I are about to be in the same boat and I'm wondering the same thing.

I think my closing costs were around $3000. As the buyer, you do not pay any realtor commissions; the seller pays the realtor a % of the selling price.

If you are buying a condo or co-op, don't forget to figure in maintainance fees. These can be anywhere from $200-$500 a month for a 1 bedroom. This cost cannot be rolled into your mortgage & is not tax deductible.

Also, if you are buying a co-op, most all of them require a minimum 20% down, where as condos & houses do not. Co-ops also have Boards who must approve you before you can close. If they don't like you, they are allowed to deny you.

Lastly, don't forget that once you buy a house, you have to furnish it.

Hope This Helps!

ETA: unlike renting, don't forget you have to pay property taxes on your home. You can google the Nassau County Tax Rate but I know my MOH in Seaford pays $10,000 a year for a 3 bedroom house. This is due quarterly and CAN be rolled into your mortgage payment & put into escrow if you so chose.

SO - if you go to a mortgage calculator & see that a $400,000 condo with 10% down costs about $2100 a month & think 'great, we can do that,' add about $1000 a month for condo fees & taxes and see if you can still do it.

FH and I bought our house last year......
Heres what I can remember
You have to get a lawyer....ours was 500
then the closing fees which vary....You find out awhile before you close what the amount is. Ours was over estimated and we actually got money back at our closing.
There really shouldnt be any 'hidden fees' though.

Hope that was somewhat helpful

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Posted by carolinebr

Also, if you are buying a co-op, most all of them require a minimum 20% down, where as condos & houses do not. Co-ops also have Boards who must approve you before you can close. If they don't like you, they are allowed to deny you.

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Do all co-ops require 20%? Can we finance part of it? I can't find condos ANYWHERE in Nassau. Am I blind or are they really rare out here?

Most coops have financing restrcitions AND income minimums.

I am pretty sure that the issue is this: when you buy a co-op, you are buying shares in a building, you aren't buying the actual unit itself. So they want to make sure you will never miss a tax payment or a mortgage payment or maintainance b/c if you default, you put the whole building at risk. They want to know you can always come up with the money.

From google:
As communities of people who share a financial obligation and responsibility for governing how they want to live together, it is important for co-ops to ensure that incoming members can meet their financial obligation and will abide by the rules of the community.

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Posted by carolinebr

I think my closing costs were around $3000. As the buyer, you do not pay any realtor commissions; the seller pays the realtor a % of the selling price.

If you are buying a condo or co-op, don't forget to figure in maintainance fees. These can be anywhere from $200-$500 a month for a 1 bedroom. This cost cannot be rolled into your mortgage & is not tax deductible.

Also, if you are buying a co-op, most all of them require a minimum 20% down, where as condos & houses do not. Co-ops also have Boards who must approve you before you can close. If they don't like you, they are allowed to deny you.

Lastly, don't forget that once you buy a house, you have to furnish it.

Hope This Helps!

ETA: unlike renting, don't forget you have to pay property taxes on your home. You can google the Nassau County Tax Rate but I know my MOH in Seaford pays $10,000 a year for a 3 bedroom house. This is due quarterly and CAN be rolled into your mortgage payment & put into escrow if you so chose.

SO - if you go to a mortgage calculator & see that a $400,000 condo with 10% down costs about $2100 a month & think 'great, we can do that,' add about $1000 a month for condo fees & taxes and see if you can still do it.

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Thanks for all the info! On top of that I CAN NOT believe what my parents pay for utilities!

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Posted by carolinebr

Most coops have financing restrcitions AND income minimums.

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{{Sigh}} The sad part is, we'll make any income minimum... saving for the down payment together while renting our apt is the bigger problem. We can't go live with either of our parents... mine are too far out in east Suffolk (I work in Queens) and FH's parents are moving to Arizona.

What seemed like a lot of money earlier today seems like a drop in the bucket now. I work a ton of overtime and FH tutors math. We're both teaching summer school. We've got a 5-digit number saved in our savings account. And now I don't think it'll be enough. Any suggestions for how to save enough so that we're not living in a shack?

ETA: Thanks for all the helpful info, ladies! I apprecate the help. I'm just depressed at the thought of having to rent for longer than I thought I'd have to.

thanks for posting this question..lots of useful info

and good luck to you

HI Girls ,, I can help with a free pre qualification no obligation ,, I work for wells fargo bank , FM me for more info

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Posted by LornaandPeter

HI Girls ,, I can help with a free pre qualification no obligation ,, I work for wells fargo bank , FM me for more info

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i'd be careful about posting advertisements for work...big brother doesnt like that.

My FH and I bought a house last summer. The realtor asked for $20,000 down to hold the house. You need about %20 percent of the price for a down payment ... unless you want to pay PMI. My lawyer was $300 through the police dept. The engineer was $150 and at the closing they will ask you to tip $100 dollars to the bank person that looks over the paper work and makes copy. Make sure you get a good lawyer that really looks after your best interest.

If I knew what I know now ... I would have never tipped them for anything. Forget it!