Costs Involved In Buying A Fort Collins Home

Costs Involved In Buying A Fort Collins Home

Costs Involved in Buying A Fort Collins Home

Costs Involved In Buying A Fort Collins Home

Before you consider buying a Fort Collins home, be prepared to get your credit score. It is best to talk to a lender about your options.

You can easily have your credit run. Get a pre-approval for a mortgage by contacting your favorite lender. Or talk to your Realtor about a lender they recommend. You need to get your ducks in a row.

Regarding Your Mortgage

For your home mortgage, there are more costs than you may think besides the interest rate and paying back the money. First, you need to factor in the down payment that you will be putting down to buy your Fort Collins home. Most financial experts agree that a 20% down payment, which is 20% of the total cost of the home, is a good figure to attempt to reach because it eliminates the need for private mortgage insurance.

If you are unable to put down at least this 20% figure, than you most likely will have to pay an additional fee each month for the private mortgage insurance. PMI, for short, protects the lender in the case that you were to default on your mortgage.

Besides these required costs associated with your home loan, you may also want to decide if loan origination and points can benefit you in the long run with your payments. Your lender may offer you the ability to pay up front for special points which allow you to get a decreased interest rate. These points can cost you thousands of dollars, however, they typically decrease your loan interest rate by 1/8 of a percent per point It’s important to do the math on these points because if you plan on taking longer than 6 years to pay back the mortgage, you may actually save money in interest by buying these points ahead of time.

Order A Home Inspection

You will want to make sure you are investing in a sound property. You will want to spend around $375 – $500 dollars for a certified, qualified, and trusted home inspector. There are other experts to survey and inspect the home as well. This way, you will know what you are buying. You can renegotiate with the seller based on repairs that need to be done.


A last cost you may not know about is the appraisal fee. You will be paying around $400 – $800 for the appraisal of the home. Although this seems like a high cost, you will directly benefit from it. Based on your appraisal, your lender will not give you financing for anything over the appraisal cost. This way, you will know you will be paying for a fair, estimated value, rather than an inflated price.

The costs above are not all the costs associated with buying your home. You need to be aware of the costs involved in buying a Fort Collins home. It is important to discuss with your realtor all costs you will encounter during your home purchase.

Allison Klein - Realtor 2112 Brookwood Dr Fort Collins, CO 80525 Call or Text 970-818-6668
Allison Klein - Realtor