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What To Know About Closing Costs

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Now that you’ve decided to buy a home and are ready to make it happen, it’s a good idea to plan ahead for the costs that are a typical part of the homebuying process.

And while your down payment is probably the number one expense on your mind, don’t forget about closing costs. Here’s what you need to know.

What Are Closing Costs?

Simply put, your closing costs are the additional fees and payments you have to make at closing. And while they’ll vary based on the price of the home and how it’s being financed, every buyer has these, so they shouldn’t be a surprise. It’s just that some people forget to budget for them. According to Freddie Mac, this part of the homebuying process typically includes: 

  • Application fees

  • Credit report fees

  • Loan origination fees

  • Appraisal fees

  • Home inspection fees

  • Title insurance

  • Homeowners insurance

  • Survey fees

  • Attorney fees

 Some of these are one-time expenses that are baked into your closing costs. Others, like homeowners’ insurance, are initial installment payments for ongoing responsibilities you’ll have once you take possession of the home.

How Much Are Closing Costs? 

The same Freddie Mac article goes on to say: 

“Closing costs vary greatly depending on your location and the price of your home. Typically, you should be prepared to pay between 2% and 5% of the home purchase price in closing fees.”

With that in mind, here’s how you can get an idea of what you’ll need to budget. Let’s say you find a home you want to purchase at today’s median price of $422,600. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $8,452 and $21,130.

 But keep in mind, if you’re in the market for a home above or below this price range, your numbers will be higher or lower.

Tips To Reduce Your Closing Costs

If you’re wondering if there’s any way to inch that down a little bit, NerdWallet lists a few things that could help: 

  • Negotiate with the Seller: Some sellers are willing to cover part or all of these expenses — especially since homes are staying on the market a bit longer now. Sellers may be more motivated to compromise, and you’ll find you have a bit more negotiation power. So don’t hesitate to ask them for concessions like paying for the home inspection or giving you a credit toward closing costs.

  • Shop Around for Home Insurance: Since rising home insurance is a challenge in many areas of the country right now, take the time to get a clear picture of all your options. Each insurance company offers their own policies and coverage, so get multiple quotes and see how they compare. Choosing a policy that provides reliable coverage at a competitive rate can make a difference.

  • Look into Closing Cost Assistance: Just like there are programs out there to help with your down payment, options exist to get support with closing costs too. While they’ll vary by area, there are programs for various income levels, certain professions, and specific towns or neighborhoods too. If you want to learn more, Experian says:

“Your real estate professional should be able to steer you toward applicable programs, and the U.S. Department of Housing and Urban Development (HUD) maintains a helpful resource for finding homebuying assistance programs in every state.”

Bottom Line

Planning for the fees and payments you'll need to cover when you're closing on your home is important – and it doesn’t have to be a big surprise. For more tips and expert advice, partner with a team of trusted real estate professionals, including a trusted agent and lender.

Read more at KeepingCurrentMatters.com

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Real Estate’s Sluggish Summer Will Give Buyers a Jump in the Fall

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High mortgage rates put the real estate market in a slump in the final month of summer—but, they could also provide a runway for buyers to jump into a less competitive market in the fall.

Homes spent 53 days on the market in August, the longest time for the month in five years, according to Realtor.com® data. There were also a staggering 19.3% of listings with price cuts, the highest level for the month in five years.

It’s not all bad news, though, and it means that buyers can now take their time shopping for a new home in the fall.

“This fall could be busier for the housing market than this season typically is, but it’s still likely to be a less competitive time, which makes it ideal for flexible buyers,” says Realtor.com Chief Economist Danielle Hale.

And there might be a silver lining for sellers as well.

What happened in August?

The record slowdown in August can be firmly blamed on high mortgage rates.

“The housing market slowed considerably as both buyers and sellers patiently wait for a lower mortgage rate environment,” says Realtor.com® senior economist Ralph McLaughlin in his analysis.

The Federal Reserve’s mid-September policy meeting is quickly approaching, and rates are expected to drop. (While the Fed doesn’t set mortgage rates, the two numbers often move in the same direction.)

Realtor.com economists predict rates will fall to 6.3% by the end of 2024. And once rates drop, expect the market to kick up a notch.

Here’s what to look for in the autumn real estate season.

Housing stock will increase this fall

A not-so-buyer-friendly thing that happened in August? New listings fell.

Home sellers pulled back, with 0.9% fewer new homes listed on the market compared with last August, marking the first negative reading in nearly a year.

However, as rates tumble, more homeowners might finally be willing to part with their existing low rates and put their homes on the market.

“There’s a stalemate in the marketplace due to the higher differential of 2024 interest rates versus 2021 interest rates,” says Realtor.com. “That 4% spread has homeowners holding on to the current rate like Gollum held onto his precious ring in ‘The Lord of the Rings.'”

Indeed, a recent Realtor.com analysis found that 86% of homeowners have mortgage rates below 6%—so many feel “locked in” until rates dip.

This fall, the number of homes for sale is likely to climb, “but part of why we’ll see this is because it will take homes longer to sell,” explains Hale.

Market pace is expected to pick up

In August, homes lingered on the listing pages for nearly a week longer than was typical last year.

In the fall, “time on market typically increases, so buyers are likely to have even more time to make decisions,” says Hale.

Even though falling rates could bring a slew of home shoppers back to the market, that doesn’t necessarily mean houses will instantly start selling like hotcakes.

In fact, the presidential election just might make some buyers hold off until Inauguration Day 2025.

“Many buyers are seeking stability and may choose to wait until there is more certainty about who will be in office before making any major financial commitments,” says Realtor.com.

However, buyers who are ready to act now have “a prime opportunity to secure a property while competition is slightly lower and rates are trending downward,” they added.

Home prices could see a bump in the fall

When mortgage rates take a dip, competition ramps up, and so do prices, since bidding wars will likely resume, according to Realtor.com.

But buyers offering the asking price won’t happen right away.

In the fall, “you will have a slight increase in confidence from both homebuyers and sellers,” they said. And that, in turn, might bump prices up slightly.

Sellers will need to stand out

High home prices and low housing stock have supported a seller’s market for years now, but that might be on the brink of change.

“The data reflects that buyers are pickier in the housing market today, and sellers have to adjust in order to stand out,” says Hale.

This might mean slashing prices further, upping curb appeal, and remaining patient for offers.

Buyers, save your searches!

Fall could be frustrating if you’re a home shopper with specific needs. It might seem like you’re looking at the same homes over and over.

Buyers can channel this frustration to reevaluate their must-have versus nice-to-have list and then use these findings to save a specific real estate search.

“They’ll be notified when listings that meet their criteria hit the market, and they won’t be distracted by homes that just aren’t a good fit,” advises Hale.

The growing number of homes for sale and the potential for further mortgage rate declines on the horizon might mean that buyers feel less pressure to buy now or else miss the opportunity entirely.

“While this may mean slower market sales activity, it likely also means shoppers who do buy in this environment have more time to make decisions and may feel more confident in their purchase if they choose to make one,” says Hale.

Read more at Realtor.com

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Creating a Cozy Home: Tips for Transitioning from Summer to Fall

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As the days grow shorter and the temperatures start to drop, our homes become the place where we find warmth and comfort from the chilly outdoors.

Transitioning your space from the light and airy vibes of summer to a warm and inviting ambiance can be done seamlessly. With just a few careful touches, you can create a cozy haven that is both comforting and embraces the seasonal beauty of autumn.

Tips For Transitioning Your Home From Summer To Fall

Incorporate Seasonal Scents

You can transform the entire atmosphere of your home with the power of a fall scent. Replace your fruity, citrus summer candles with earthy aromas. A few ideas for this include essential oils in a diffuser, creating your own potpourri with dried orange slices and cinnamon sticks, or candles. Scents like pumpkin spice, apple cider or cedar and sandalwood will put you in your fall feels.

Infuse Seasonal Warmth With Art

Adding art to your home is a great way add the season's warmth and charm into your space. Swap out bright, summery artwork for pieces that reflect earthy tones and textures of autumn. Consider natural landscapes, woodland scenes or deep shades of oranges, reds and browns. Art is an easy way to create a visual connection to the fall season, giving the home a sense of cozy!

Dim the Lights

As the daylight disappears, lighting becomes crucial in creating the ideal cozy ambiance. Now that the bright summer sun has gone, bring in a warmer, softer glow by using lamps, candles and lanterns. Using table and floor lamps with warm-toned bulbs will help create a soft, inviting space. If your switches have dimmers, adjust the brightness according to your mood. Candles are great to place throughout the house – on coffee tables, mantels, counters. 

Add Nature-Inspired Seasonal Decor

Bringing in elements of the outdoors is a great way to celebrate the season. Fall is all about rich, natural colors and textures so it's easy to play with outdoor elements. Hang a wreath made with dried leaves, pinecones and berries on the front door. Grab a fall doormat, layered with a buffalo plaid rug. Scatter small pumpkins, gourds and pinecones on the porch and entryway. They also look good on the dining table as a centerpiece. If you have any empty vases, fill them with branches, dried grass or colorful fall foliage. It's an easy, affordable way to decorate for autumn.

Read more at Bucks.HappeningMag.com

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Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List

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Since the supply of homes for sale is growing and mortgage rates are coming down, you may be thinking it’s finally your moment to jump into the market.

To make sure you’re ready, you need to get pre-approved for a mortgage.

That’s when a lender looks at your finances, including things like your W-2, tax returns, credit score, and bank statements, to figure out what they’re willing to loan you. After that process, you’ll get a pre-approval letter to show what you can borrow. Here are two reasons why this is essential in today’s market.

Pre-Approval Helps You Know Your Numbers

While home affordability is finally starting to show signs of improving, it’s still tight. So, it’s a good idea to talk to a lender about your loan options and how today’s changing mortgage rates will impact your monthly payment. The pre-approval process is the perfect time for that. In addition to determining the maximum amount you can borrow, pre-approval also helps you understand this piece of the puzzle. As Investopedia says:

“Consulting with a lender and obtaining a pre-approval letter allows you to discuss loan options and budgeting with the lender; this step can clarify your total house-hunting budget and the monthly mortgage payment you can afford.”

You should use this information to tailor your home search to what you’re actually comfortable with budget-wise. Since mortgage rates have inched down some lately, you may find you’re able to afford a bit more than you’d expect for your monthly payment, but you still want to

avoid overextending. As CNET explains:

“In many cases, a lender may preapprove you for more than you need to spend on a home. And while it can be tempting to look at houses outside your budget, it won’t help you in the long run. Before you start touring homes, figure out how much you can realistically afford and stick to your budget.”

Pre-Approval Makes Your Offer More Appealing

And once you do find a home you want in your budget, pre-approval has another big perk. It not only makes your offer stronger, it also shows sellers you’ve already undergone a credit and financial check. When a seller sees you as a serious buyer, they may be more attracted to your offer because it seems more likely to go through. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”

As mortgage rates trend down, more buyers are going to be ready to jump back into the market. And while demand is still limited right now, there’s the potential for competition to pick back up, especially in hot markets. So, why not stack the deck in your favor and make sure you’re putting yourself in the best position possible when you find a home you love?

Bottom Line

If you’re planning on buying a home, don’t forget to get pre-approved early in the process. It can help you get a more in-depth understanding of what you can borrow and shows sellers you mean business.

Read more at KeepingCurrentMatters.com

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Colorado Fall Leaves Drive Guide

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Fall River Road to St. Mary's Alice Glacier

Distance: 9 miles one way

From Denver, take I-70 west to exit 238 (Fall River Road). Follow Fall River Road north for 9 miles to the St. Mary's Alice trailhead. Although not restricted to 4WD vehicles, the road is very steep and winding.

Despite its name, St. Mary's Alice glacier is more of a perennial snowfield because it doesn't flow. You will see, however, the changing fall colors of dense willows and Rocky Mountain bristlecone pines. This winding alpine drive is convenient and easy to find, ending with the option of a short, moderately difficult hike.

If you decide to attempt the 1.5-mile hike to the "glacier" and lake, there is a fee to park. 1.5 miles might not sound long, but it is an uphill climb at elevations reaching 11,000 feet. Your reward for your hard work: stellar alpine views and the rare right to say you've hiked a perennial snowfield.

Conifer to South Park over Kenosha Pass

Distance: 54 miles one way
Start in Conifer, 15 miles southwest of Denver. Travel along Route 285 traversing Kenosha Pass. End in Fairplay, the largest town in the South Park valley.

TV fans recognize the name South Park from the eponymous animated series, but only the most dedicated fans know that the show is actually based on the writers' experiences growing up in Conifer, not South Park. This drive connects both of these areas via high-altitude Kenosha Pass, which is wide and well maintained, with easily navigated turns. It is one of the best drives in Colorado to view autumn's leaves — vibrant reds and glowing yellows of the aspen woodlands are a striking contrast to the ponderosa pines and Douglas firs around Conifer. The pass eventually spills out into the high grassland basin of South Park, where unobstructed views of the Mosquito Range peaks appear in the west.

Nederland to the Fourth of July Trailhead

Distance: 9 miles one way
To reach the Fourth of July Trailhead from Nederland, drive south on CO 119 for 0.5 miles. Take a right on County Road 130 toward Eldora. Follow the paved road through the valley past the town of Eldora, until the pavement ends. Continue another 4 miles to the end of the road. You do not need a 4WD vehicle, but much of the road is unpaved and very bumpy. Anticipate very slow speeds.

Located 17 miles southwest of Boulder, Nederland is a historic mining town that now embodies an eclectic vibe. After your drive out to the Fourth of July Trailhead, stop in at a local brewery for a bite to eat and have a craft beer. Take this chance to relax after your drive — it's on a pretty rugged and slow-going dirt road. You will be greatly rewarded, though, with a fall scene of densely wooded, fiery aspen trees. The trailhead, named for its tendency to have snow on the ground until the Fourth of July, is a popular starting point for many hikes in the area.

Rim Rock Drive Through Colorado National Monument

Distance: 23 miles one way
Take I-70 west to Grand Junction, exit 31 (Horizon Drive). Follow signs through Grand Junction to the monument's east entrance.

Colorado's Grand Valley feels like cowboy country. As you drive along Rim Rock Drive in Colorado National Monument, you'll wish you were trotting along atop your horse, tipping back your Stetson as you peer out at the sunset-colored plateaus, canyons and arches. The drive is a well-maintained paved road traversing the monument. You'll want to get out of the car to enjoy the crisp fall air and to snap some photos of the red-and purple-streaked, water-sculpted cliff walls, whimsically arranged rock formations and sky-high mesas. 2011 marked the monument's centennial anniversary, and as one element of the celebration, a statue of John Otto was unveiled in nearby Fruita. As the monument's first park ranger, Otto was so devoted to the area that he was described in news accounts as the "Hermit of Monument Canyon."

Top of the Rockies

Distance: 82 miles
Bookended by two ski resorts, this sky-high trip takes you from Copper Mountain to Leadville and west to Aspen. With the majority of the byway winding above 9,000 feet, you’ll cross the Continental Divide and follow the Arkansas River past old mining camps, high-country lakes and towering 14,438-foot Mount Elbert.

Pull over for: Downtown Leadville. The nation’s highest-elevation incorporated city is a National Historic Landmark full of mining museums, antique shops and Victorian-era architecture.
Stretch your legs at: The Independence Ghost Town Site. Between Twin Lakes and Aspen, Independence Pass twists around stunning groves of aspen to the former gold rush tent city.

West Elk Loop

Distance: 205 miles
This by way circles the West Elk Mountains on a journey through Paonia, Gunnison, Crested Butte and Carbondale. Touching three national forests, the drive crosses diverse landscapes of meadows, rivers, canyons and enormous aspen stands lit up in gold and orange.

Pull over for: McClure Pass photos. Views to either side of the high mountain corridor spill out into a green, yellow and auburn canvas sprinkled with striking red scrub oaks.
Stretch your legs at: Curecanti National Recreation Area. The intersection of Black Canyon of the Gunnison National Park with Morrow Point, Blue Mesa and Crystal lakes is an unbeatable spot for picnicking and sightseeing.

Cache la Poudre-North Park

Distance: 101 miles
Travel from Fort Collins to the secluded valley of North Park where deer, elk and moose graze and quaking aspen mingle with massive forests of pine drinking from the Cache la Poudre River.

Pull over for: East Sand Dunes Natural Area. Rare cold-climate dunes rise and fall in the Medicine Bow Range.
Stretch your legs at: Red Feather Lakes. Set in mountainous Roosevelt National Forest, the remote village is known for its hiking and biking trails.

Read more at Colorado.com

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