We’ve got our final cash-to-close number for the house – and even after we put the down payment, pre-pay 9 months(!!) of escrow, buy all the new appliances we need, and pay the movers to actually move us in, we’ll still have about 6.5k left over to do with as we please. We already have a list of things we want to buy for the house to “improve” it – like blinds, a humidifier, and a deck – in that order most likely.
What does it take to buy a house?
We’re putting 20% down, we have a 3.875% rate (no points), and we’re borrowing just over 293k. Some of these costs are based on the APR and the purchase price, so that’s why I give background I’ve rounded off the numbers using the standard round down if less than 50 cents, round up if more than 50 cents.
Underwriting/Processing fees: $1297
Appraisal, credit report fee, etc: $844
Title Charges (mostly lender’s title insurance): $3119
Taxes/fees to the local governments: $3967
HOA origination fee: $200
Total closing costs (that we’ll never see again): $9427
Then there’s the pre-paid amounts – this includes the first year of homeowner’s insurance ($420/yr through USAA!) 1 day of interest, 3 months of homeowner’s insurance, and 9 months of property taxes (there are three: “Property taxes”, “city property taxes”, and “school taxes”). If I didn’t escrow, the rate would have been > 4%, and there’s no way I can make that up in interest on what sits there waiting to pay taxes.
$7215 (most of which is school taxes of $4464 <- about a year’s worth of property taxes in NoVA)
For a grand total of: $16,642 in closing costs and fees, about $9500 of which is just “gone” to never be seen again (aka the “cost” of financing/purchasing).
Now, there are likely better rates available, and better closing cost prices, but we’re getting a 35k credit from the builder for going through their lender, which pretty much makes up for any extra costs (and lowers our property taxes over time since they’re based on the purchase price of the house, and the purchase price is where that 35k came off). That’s hard to compete against.