Post # 1
Long story short, we just found out 2 days ago that we will need to buy a home sometime between now and like Feb. FIL’s are offering us the same deal they have given to all of their children and that is either land or $50,000 toward a new home. Due to a lack of savings we’re going to have to choose the $50,000 option.
Today I found a seemingly perfect place that’s not too far away. It is priced at $49,500, so we could immediately pay it off and not have a mortgage payment. Anyway, so my big question is:
Are there any costs that aren’t included in that price that might bump it up enough that we’ll need to get a mortgage?
Post # 3
The only thing I can think of is property taxes and fees associated with transferring the title. Since you are paying in cash, both of these can be used as bargaining chips during negotiation so that the seller pays. Either way, it won’t be large enough to warrant a mortgage.
Other costs that won’t warrant a mortgage include moving, maintenance, and homeowner’s insurance.
Hope this helps.
Post # 4
Can I just say how jealous I am that you have houses in your area for $50,000??
Post # 5
@baldor1: Is there a way to guesstimate what home owner’s will cost us? I don’t think we’ll have much in the way of title fees as I’m hoping my aunt will give us a bit of a deal since she works for a title company here. And we’ll just move ourselves as wherever we move it won’t be more than across town really. Thank you for reminding me of that stuff though.
@babyboo: Trust me babyboo, they’re not nearly what we’re used to living in. My dad’s home is more like $150,000 and they bought it about 14 years ago for $96,000 and my FIL’s home is about $2 mil because of all the land and it’s in the middle of town.
Post # 6
You can probably look up the property taxes on your local county clerk website. You will only have to pay a prorated amount to the seller for the amount of the year that they have already paid. If you aren’t having a mortgage, you will have to pay the property taxes and insurance out of your own pocket every year. Also, don’t forget about the higher cost of utilities, maintenance, etc (these aren’t mortgage expenses but things you need to think about when you buy it).
Post # 7
@Toffee: Homeowner’s insurance cost will be dependent on the value of your home, the value of the belongings in your home, and the location of your home. The best way to get this number is to call your car insurance provider and ask them to provide you with a quote. The cost won’t be much…my best guess is $25/month.
Post # 8
You gals are a wealth of information, for which I am very glad. I guess we have quite a bit to think about, but I’m glad we started looking immediately because we’ll at least have a fair amount of cash coming in so that we can afford all these little expenses.