Understanding Closing Costs When Buying Your Knoxville, TN Home

Most people who are in the market for a new home are aware of the costs associated with purchasing a home and moving, but closing costs can be expenses that may be overlooked, especially for first-time home buyers.  In most cases, they can be approximately four percent of the purchase price of your home.  So before planning your home purchase budget, here are some expenses that aren’t always talked about that you may want to include when buying your Knoxville TN home.

 

In general, there are two types of closing costs, recurring and non-recurring.  Recurring costs include things like fire and flood insurance, property taxes, and mortgage insurance; these are expenses that should become part of your monthly budget and in most cases, are often anticipated by new home buyers.

 

Non-recurring costs are one-time costs that are associated with closing a home purchase, and usually make up the bulk of extra expenses.  Non-recurring closing costs usually include:

  • Title Policies
  • Escrow
  • Wire Fees
  • Delivery
  • Endorsements
  • Recording
  • Transfer Taxes
  • Home Protection Plans
  • Natural Hazard Disclosures
  • Home Inspection
  • Lender Fees

 

All of these costs will be discussed with you by your lender. And your actual closing fees may include just a few of these costs. Purchasing a home is a huge investment and expense, and getting a clear picture of the cost before signing your name on the dotted line is important.

 

If you would like a referral to a lender or you are thinking of buying your Knoxville TN home, call me today at 865-588-3232

Buying vs Renting Your Knoxville TN Home

When it comes to a home, you have two options: buy or rent.  What is right for one person may not be right for another, which is why it’s important to know which is the best option for your individual situation, especially now that interest rates are starting to rise.

Why People Rent

There are a number of reasons why someone may either choose or be forced to rent, frequent relocating for employment, sporadic or unpredictable income, a high debt-to-income ratio, a bankruptcy or foreclosure within the last six months, unpaid collection accounts or judgments, or just not wanting the commitment to maintaining a home.

Maintenance Matters

As a homeowner, you will be responsible for any maintenance or repair issues that arise.  This is a big consideration when choosing whether to rent or buy.  When you rent, the property owner is responsible for repairs and it may not always be obvious that these issues can be very costly.

How To Know When It’s Time To Buy

If you have steady income with a good employment history, can provide a down payment of at least 3.5-10 percent of the purchase price and are current with all debts, it may be time to consider buying a home instead of renting.  In some cases, the cost of rent may even exceed that of a typical mortgage payment.

When deciding to buy, job stability is a big factor.  If your job does not require frequent relocation and you plan to live in the home for at least 5-10 years, you may want to consider making the purchase.  If you need to relocate after that, you may have enough equity from the sale to use as a down payment on another home.

Home Buyer’s Checklist 

If you can answer yes to the following questions, you may be ready for home ownership.  I can help you to find the perfect home based on your individual needs.

  • Have you been steadily employed for at least one year, but preferably two years?
  • Do you plan to live in the home long enough to build equity?
  • Can you provide a down payment and still have enough money left to pay for closing costs, utilities and home furnishings?
  • Are you current on all debts, including auto loans, credit cards, etc.?
  • In addition to any current debts that you may have, can you afford a monthly mortgage payment which will likely include property taxes and insurance?
  • Do you have the time to devote to shopping for a home and comparing interest rates from various lenders?
  • Have you checked your credit reports for inaccuracies and disputed anything that needs correction with each of the three major credit reporting agencies?

The decision to buy or rent is a very personal one that can only be determined after a careful evaluation of your situation. I can show you the perfect home and a lender can tell you whether or not you can afford it, but it’s up to you to make the choice as to whether or not you are ready to make the move. If you have been thinking of buying, now would be the time to start getting your finances in order, and lock in a lower interest rate, before the rates go up too much. If you aren’t sure, give me a call today at 865-588-3232, and ask for Chiara!

Get An App To Help Your Home Search

Yeah, well, I’ve been using the app for a while and just finally figured out that I can put this thing on my website. How cool is that? Sometimes you just need an afternoon off to get these things figured out so that I can better help you in your home search.

Just go here to the home page and my home search app will be sent to your phone. Or you can text TNHOMES412 to 32323 to have the app sent to your phone.

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Visiting a neighborhood you like, just open the app and look at the listings in that area. Or, if you see a house you would like to know more about, just ask from the app. Cool!

 

I look forward to hearing from you!

Tiny Homes — Are they right for you?

We’ve all (almost) heard about the “Tiny Home Revolution”, how folks are downsizing from a couple thousand square feet to about 100-400 square feet. Yikes! That’s a lot of stuff to get rid of, but the thought of living mortgage-free is very tempting to many people, as is the ecological impact. There are a lot of reasons you may consider a tiny home, but there are some costs that are not always shown in the popular reality TV shows.

TinyHouses-Infographic-1000wlogoUp-front cost: Interestingly, one website dedicated to Tiny Living notes in their info-graphic that the average cost to build a Tiny Home is about $23,000 — if built by the owner. You will most likely have to pay plumbers and electricians to properly install those systems, not to mention carpenters if you aren’t one.

 

Whether your tiny home is non-moveable or on wheels, you will either have to buy a piece of property (unless you’ve already done that), or include the cost of renting a property. Some mobile tiny homes are RV park ready, so you can rent your space and hook up to water and electric. So, you will be adding the cost of property or the cost of renting property or the cost of an RV park into your monthly expenses.

 

If you are opting for a mobile tiny home, well, now you must have a strong vehicle to pull around your home. What size truck you need depends on the type of home you will build. In other words, forget the Eco-friendly vehicle. However, if you are opting for your tiny home to remain on a piece of property you will still incur additional costs beyond the cost of the land. Permits to build your tiny home cost, and if you need your plans signed off by an architect, well, there’s another added expense.

 

These are just some of the added costs that you might incur if you want your own Tiny Home. These added costs are not put out to scare you, but to inform you of what else is involved in getting to your own tiny home. Don’t be swayed by the low-cost of tiny living.

 

Considering a move to Knoxville, TN? Call Chiara at 865-588-3232

Buying a home in Knoxville, TN

Finding The Perfect HomeBuying a home in Knoxville, TN can be a scary process. You have dreamed about owning your home, you have scrimped and saved, but where to start? It’s fun to look at houses on the various sites like Realtor.com, Zillow and Trulia, and you may be tempted to contact one of those smiling faces in the sidebar, or contact the listing agent directly.

 

But, is that really the best thing for you to do? Did you know that the Realtor you choose to work with should keep your best interests above their own interests? Ideally, you want to work with a Realtor that is as enthusiastic about working with you as you are about working with them. You want to work with a Realtor that is responsive to you and will communicate clearly and in your preferred style (email, text, phone).

 

There is much to consider, and many steps to the process of buying a home. So, to help you out, I’ve created a savable/downloadable Guide to Buying a Home in Knoxville TN to help you understand the process.

 

I hope you find it helpful, and I look forward to helping you today!