Although most people interested in buying a home have a good idea of the cost
involved, the truth is that there are many hidden costs associated with homeownership that are often overlooked. In addition to the actual loan required to purchase the home, you want to remember settlement costs, which can blindside some buyers. The real estate settlement costs are what a buyer typically pays to include things such as legal services property insurance, mortgage loan financing, title services, and so on.
For many years, homebuyers would simply ask various lenders for an estimate of the settlement costs, then comparing the various results so they could choose the lender with the lowest rates. However, the Department of Housing and Urban Development or HUD has recently made revisions in the form of Real Estate Settlement Procedures Act or RESPA. This new law actually makes estimation of these costs much easier for consumers by using special computer loan, origination programs.
These special programs have been designed by a number of lending institutions,
providing consumers the opportunity to access and review programs while arranging financing, all online. Keep in mind that sometimes, to use these services a small fee may be required but well worth the small investment. In addition, the new RESPA program now allows real estate brokers to offer buyers comprehensive services beyond what is currently offered.
With the creation of the RESPA, the goal is to help homebuyers learn about but also obtain mortgage services that are convenient and best matched. By understanding the various processes of homeownership, along with some of the hidden or forgotten costs, people are more encouraged to buy and far better prepared. Therefore, if you want to buy a home, you want to do all you can to prepare yourself the best way you can. Being financially prepared is the best step in becoming the owner of your dream home.