100% Financing may not be what you think


Some lenders, or loan types, offer 100% financing when you purchase a home. At times, buyers think that they will be getting into a new home...without having to pay anything. Sometimes that's possible, but the vast majority of the time, it isn't. Those pesky closing costs can mount up pretty quickly. Yes, the financing is 100%, but that does not include the closing costs.

Lets talk about some of the most common closing costs you can anticipate here in Maryland.

APPRAISAL FEE: This can be paid up front, but can also be included in the money you bring to settlement. Appraisal fees are charged to the buyer from their lender, and can range from $400 to $600. This is not discretionary, and will be required to be paid.

LOCATION SURVEY: A location survey is done to show the lot lines of the property. This isn't a staked survey, which can be done, but would be more expensive. Since all properties have been surveyed in the past, a surveyor will come out to the property to insure that there are no encroachments to the property, or that a structure isn't encroaching on someone else's property. Frequently, fences, sheds, carports, etc., aren't exactly within someone's property lines. This will have to be taken care of prior to settlement. Location surveys range around $300, and are another cost to the buyer at settlement.