Anticipate expenses related to the purchase of a property and the down payment
In addition to the sale price of the property, the purchaser of real estate must provide for several costs related to the transaction. Here is a list of expenses to consider when buying a property:
Down payment to buy a property
The down payment is the amount that the lending institution will require to provide a loan. A minimum down payment of 5% of the value of the property is required for a detached house, a divided condominium or a duplex. The minimum down payment is 10% for a triplex or a building of up to 4 units. In the case of an undivided co-ownership or a property that will not be the principal residence of the buyer, a down payment of 20% will be required. For the Closing Costs in Santa Cruz, CA this is important.
The difference between the property divides and undivided
If the down payment is less than 20% of the market value of the property, the buyer must purchase mortgage insurance. The premium to be paid for this insurance varies from 0.5% to 2.90% of the total sum borrowed. The process for obtaining this insurance coverage is made by the lending financial institution. The premium can be added to monthly