Tag Archives: moving expenses

Going Broke While Saving Money

A ten dollar off coupon at the hardware store and a ten percent off discount for new carpeting, there are plenty of ways to trim costs for moving into a newly purchased home.  But none the less, moving is expensive.  And moving into a home you are buying, is even more expensive than if you were renting.  Renting requires first and last mont

A ten dollar off coupon at the hardware store and a ten percent off discount for new carpeting, there are plenty of ways to trim costs for moving into a newly purchased home.  But none the less, moving is expensive.  And moving into a home you are buying, is even more expensive than if you were renting.  Renting requires first and last month’s rent, plus the deposit.  Expensive yes, but typically the space is move-in ready.  However, when buying a home, as exciting of a venture it may be, its cost can be daunting especially since you can’t tell how much you are going to spend by the end of purchase and the home is not always move-in ready.  After the down payment, closing costs, moving costs and possibly even needed repairs if you have an FHA loan, you may be broke before you have a chance to get new furniture and paint!

Many of us might be aware that for first time home buyers there is an FHA loan available which is one way the down payment could be reduced, there is also the possibility of having the closing paid by someone else.  For example, a foreclosure owned by Fannie Mae is eligible for 3.5% closing cost to be covered by Fannie Mae.  The buyer does not have to be a first time home buyer, but they do need to be purchasing the home for the purpose of residing in it.  Also, this offer is for a limited time and expires in October of 2011.  For more info check out the Homepath.com website, you’ll find other special promotions offered by Fannie Mae as well as Fannie Mae foreclosures.

As for the cost of everything else to move, borrow a truck or trailer from a friend or family, what are friends for anyway?  Unfortunately, if you are buying a foreclosure with the new FHA loan, like myself, it’s not enough for the buyer to qualify, the house has to meet FHA living standards as well.  In today’s market with there being more foreclosures than the banks know what to do with and prices dropping, many banks owning these properties are not willing to fork out the expenses to make the house move-in ready or to even make the needed repairs to meet the FHA requirements.  This leaves the buyer with the additional cost making such repairs, and shall we mention the fee charged by the bank for not closing on time?  That is an issue that should be addressed when signing the sale agreement after an offer has been accepted.  Be sure that there isn’t a clause in the contract supporting a fee for not closing on time, and if there is, be sure that all parts of the transaction will work out smoothly or else you will be stuck paying a significant amount more than anticipated at closing, your down payment plus $100 per day after closing until you finally sign. Your realtor may be able to help you request an extension but even that is by the bank’s approval and not a guaranteed loophole.

In the whole process of things, the buyer saves money with a reduced down payment, a deduction from closing costs, coupons at the hardware store for paint and supplies, and simply offers to pay friends gas for their truck rather than renting a truck, and the buyer is moving in with a drained savings account.  At least the buyer knows that it is all going into an investment… a long term investment.

~Stephanie Paz

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