The cost of a home is obviously an important factor for anyone looking to make a real estate investment. But the cost of a home is just one of the expenses you must be ready for when purchasing the property. Closing costs are often treated as an afterthought, but they can create a financial burden if you are not prepared for them. Keep reading to learn what to expect when it comes to closing costs.
Preparing for Closing Costs
Closing costs are the fees that you will need to pay in order to close on your new house. These fees typically range from 1 to 5 percent of the total cost of the home. There are a variety of fees that might be included in your closing costs, including inspection fees, closing fees, attorney fees, insurance payments, escrow deposits, and more. Your realtor can help you understand which fees you must pay in your closing costs.
Can I Use My Loan to Pay Closing Costs?
Closing costs can often be financed using one of our loan packages. In order to use your loan to pay for closing costs, the purchase price of your home and all necessary repairs must be under 70% of the home’s ARV.
Are Our Loan Programs Right For You?
If you are an investor Red Door Funding can help you make your investment dreams a reality. To learn more about our loan programs, scroll through our website. When you are ready for your loan, get started by filling out our simple credit application online or by calling us at 832-539-1099.