You may have saved money for the down payment on your first New Orleans home, but did you know that there are additional costs involved in your purchase?
While you may be able to negotiate with a seller to pay for some of the costs, here are some of the closing costs you need to be prepared to pay at the Act of Sale:
- Loan application fees (credit report)
- PMI – Private Mortgage Insurance is required on any loan where the buyer puts down less than 20% of the purchase price
- Appraisal fee
- Title insurance for both yourself and your lender
- Home owner insurance – you’ll need to pay one year in advance and then deposit 3-5 months of premiums to start your escrow account
- Flood insurance – same as home owner insurance
- Title company/attorney fees – these are the fees charged for the title and property research along with the Act of Sale document preparation
- Property taxes are pro-rated at the Act of Sale. In Orleans Parish, this means you will need to reimburse the seller for the property taxes they have already paid for the time between your closing and the end of the year. In all other parishes, property taxes are paid in arrears and you will receive a credit from the seller to pay their portion.
- Recording fees – once the Act of Sale is complete, the sale and mortgage must be filed with the Clerk of Court. The parish, of course, charges a fee for this service.
Depending on the type and/or location of the property you purchase, there may be additional fees due at closing, such as condo fees or HOA fees.
Need more information on how to buy your first home? Just ask. We’ve got answers.