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!

Presenting 7317 Willette Court Knoxville TN

Welcome to 7317 Willette Court Knoxville TN, being offered at $196,000. This 3 bedroom, 3 bath home offers plenty of space for. It also has a separate workshop (with electric and cable) and a storage shed.

If you want a quick tour, check out the video below, or the portfolio here. Schedule your own private showing by calling 865-588-3232 today.

Seven Things to Consider Before Listing Your Knoxville Home

Sold Home For Sale Sign in Front of New House

Sold Home For Sale Sign in Front of New House

You have decided that you are going to sell your home.  While your home may work just as it is for you and your family and you don’t want to invest any more time or money into your property, there are a few necessary steps that every homeowner should take to ensure that their home will sell quickly and at the highest price possible.

 

Contact me and I will give you advice on what your property’s potential value may be, what improvements your home needs to get the best price, and the best strategy to use to market your home.

 

Have Your Home Professionally Cleaned-While this may seem like an unnecessary expense, it can give your home that fresh appearance that really appeals to potential buyers.

 

Make All Necessary Minor Repairs-This is an inexpensive way to give your home a finished look and will convince potential buyers that the home is in good repair.  This includes fixing any damage to walls and ceilings, installing new faucets or lighting fixtures, and making any cosmetic changes to the kitchen and bathrooms that will give your property a modern appearance.

 

Clear The Clutter-Giving your home an open and clean appearance can definitely make a huge difference in attracting buyers.  Be sure you tidy any messy areas of the home, and depersonalize it by removing most photos and any items or collections that may distract buyers during open houses or while looking at pictures of your home.

 

Look At Your Home From A Buyer’s Perspective-Because you are use to it, sometimes you may not notice small imperfections or areas of your home that seem not to flow with the rest of the house.  Try to take a walk through your home and on your property with fresh eyes, and be as critical as you would be if you were looking to buy your home again.

 

Make Repairs To The Exterior-Don’t forget the front and back yards, as well as the roof and brick or siding of your home, when making repairs to your property.  Your investment is always worth it, and creating curb appeal can really make a difference in attracting buyers.

 

Consider More Major Renovations If Necessary-If your kitchen or bathroom is very outdated or in bad repair, or you have electrical, plumbing, or water problems in your home, these are all issues that can really stall the sale of your property.  Fixing these problems will usually not only make your home sell more quickly, but will also increase the value of your home far beyond the expense associated with making the repairs in the first place.

 

An updated, well taken-care-of home, does not stay on the market for long. If you are considering selling your Knoxville home, call me today at 865-588-3232.

Thanks to All Who Served

I would like to extend a heartfelt thank you to all who have served our country.

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