COSTS OF HOMEBUYING

What can you expect to pay when purchasing a home:

  • Homebuyer Education is required and if you are able to take it in-person it is FREE or $99 online. Each borrower is required to have a Homebuyer Education certificate. We recommend taking this class before speaking with a lender and/or realtor. Class size is limited and fills up quickly. Registration is required. Learn More >>
     

  • When you enter into a Purchase and Sale agreement to buy a home you will need to pay earnest money ($100). 

  • You will need to have an inspection and appraisal done of the home you plan to purchase. You will pay $400 - $600 for each to a professional inspector and appraiser on the day s/he conducts the inspection. The inspection is not required by the NWMTCLT program, but strongly recommended.

  • Attorney Ground Lease Review: We have worked with Mies Faerber, a local attorney, who is familiar with our ground lease agreement. For a reasonable fee of $100, he will review the terms of the ground lease with you. This is a requirement of participation in our program. You may use another attorney if you wish, but you will most likely pay more.

  • Closing costs: Discuss these with your lender. They can range from $3,000 - $8,000 and are a combination of fees associated with your loan and the transaction as well as pre-paid property taxes, insurance and interest. In some cases, the closing costs may be financed with the loan. Often your first mortgage payment isn't due until the first of the month following the next month after closing. Often your first two months of mortgage is paid out of closing. Again, seek clarity from your lender. Down payment and closing cost assistance is available. Discuss with your lender.

On-going costs of homeownership:

  • Your mortgage payment - including the ground lease fee and any homeowner association dues it should be around 1/3 of your gross monthly income and will include a payment of your loan principle, interest on your loan, property taxes and homeowner's insurance. The ground lease fee is $25 per month.

  • Homeowner's Association Dues - if you are part of of a homeowners' association you will pay dues to take care of common elements such as landscaping, common utilities and maintenance reserves.

  • Utilities - As a renter probably some of your utility costs were collected as part of your rent. As an owner, you're responsible for all the utilities including water, sewer and garbage which can be quite expensive. Be sure to understand average utility costs and budget accordingly.

  • SAVING FOR MAINTENANCE AND REPAIRS - There is no landlord to call when you're a homeowner. You'll want to budget for repairs such as a new roof and maintenance items such as caulking, gutter cleaning, repainting and such. A good rule of thumb is around 1% of the "value" of your home per year. So if your home is worth $300,000 (even though you purchased it for $200,000) you should be saving (and spending when needed) around $3,000 per year.

ABOUT US

Northwest Montana Community Land Trust, Inc. is committed to preserving the affordability of housing - one owner after another, one generation after another, in perpetuity.

CONTACT

406.240.4493

 

P.O. Box 9316 

Kalispell, MT 59904

 

nwmtclt@gmail.com

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