Understanding the full scope of costs associated with homeownership is crucial for making informed decisions. Explore upfront costs, closing costs, and ongoing expenses to better understand how much house you can afford. 

Upfront Costs

Before you even begin making mortgage payments, there are upfront costs to consider. These include:

Earnest Money: A deposit paid upon making the initial offer, demonstrating your serious intent to purchase the property.

Down Payment: Paid at the time of closing, a higher down payment can reduce your monthly mortgage payments and potentially lower your interest rate.

Closing Costs

Closing costs typically range from 2% to 4% of your total loan amount and may include:

  • Mortgage Fees: Fees associated with processing and underwriting your mortgage.
  • Appraisals, Credit Reports, Inspections and Survey Fees: Costs for property inspections and surveys.
  • Title Insurance and Recording Fees: Charges related to title insurance and recording the deed.
  • Escrow Deposit: Funds set aside for property taxes and insurance.

While the list of closing costs may seem challenging, your mortgage lender can provide estimates upfront, and you may negotiate with the seller to cover some of these expenses. Cut through the mystery and use our Chat function to get connected with a Mortgage Consultant.

Ongoing Costs of Homeownership

Owning a home involves more than just the monthly mortgage payment. Ongoing expenses include:

  • Mortgage Insurance: Protects the lender in case of default.
  • Homeowners Insurance: Protects your property and possessions.
  • Property Taxes: Taxes assessed by local governments.
  • Monthly Utilities: Costs for electricity, water, and other services.
  • Home Repairs: Budgeting for maintenance and unexpected repairs is essential.

Considering these ongoing expenses alongside your mortgage payment is crucial for long-term financial planning.

Fidelity Bank Will Get You the Details You Need

Ready to take the first steps towards homeownership?

Try our Prequalification Calculator: Use the numbers you have, learn what numbers you need to get that first ballpark estimate of what mortgage you may qualify for.

Note: This calculator should be used for estimation purposes only.

When you are ready: Start your prequalification process online today!

Prequalifying for a mortgage is an important first step in the homebuying process. By understanding how much you may be able to borrow, you can shop for homes with confidence and make informed decisions throughout your home buying journey.

Need help?

For more information or questions, please call us at 1-800-388-4380 or email us at Fidelity@fddbank.com.