Unexpected Costs Could Leave You Reeling

Don’t go into a transaction unprepared. There is a difference between closing costs and the total cost to close, and it could be thousands of dollars.

Want to Sell Your Home? Get the Value of Your Central or Southwest Virginia Home

Looking to Buy a Home? Search All Homes on the MLS

Today we’re going to discuss some of the unexpected costs you may run into when purchasing a home, specifically regarding closing costs.

Closing costs are different from the cost to close. A lot of people think closing costs are everything they’ll need to close on a home. 

The difference between specific closing costs and the total cost to close could be thousands of dollars.

In our area, however, closing costs are strictly defined in the contract, so the difference between specific closing costs and the total cost to close could be thousands of dollars. 

Your annual homeowners insurance is not a closing cost—it is a cost to close, as are property taxes. Things like that can run up your cost to close very quickly, so when you’re getting a quote for closing costs, make sure it’s not just for closing costs, but how much money you will actually need in total to be able to close on the home.


If you need any information about this or other topics, please feel free to contact us.

Do Speedy Visits Spell Disinterest for Your House?

If a buyer makes a speedy visit to your house, they’re probably not interested in it. Here’s why.

Want to Sell Your Home? Get the Value of Your Central or Southwest Virginia Home

Looking to Buy a Home? Search All Homes on the MLS

If a prospective buyer zips in and out of your house, they’re probably not a serious buyer—at least not for your house.

There are a variety of reasons why a buyer would make a speedy visit. Maybe when they drove up to your home, they didn’t like the landscaping, the exterior, or just the neighborhood in general. Perhaps when they walked into the house there was a smell or odor they didn’t like. Maybe it just wasn’t the right house for them.

A speedy visit means that buyer probably isn’t interested in your house.

A serious buyer, on the other hand, will stop and envision themselves in your house. They’ll take the time to imagine where their furniture would go and mentally pick out rooms for their children.

It’s very rare that a buyer zips in and out of your house and then comes back to make an offer on it. If they make a speedy visit, you pretty much have your answer whether they’re interested in your house or not.

If you have any questions about speedy visits or you’re thinking of buying or selling a house in our Roanoke market, don’t hesitate to reach out to us. We’d love to work with you.

What Type of Loans Exist for Renovations?

Are there any loan options for home renovations out there? There are two, but one is better than the other.

Want to Sell Your Home? Get the Value of Your Central or Southwest Virginia Home

Looking to Buy a Home? Search All Homes on the MLS

There are two types of loans that you can get to help fund your renovation project: the FHA loan and conventional loan.

The conventional loan is the more difficult of the two to get approved for. You need more money down than the other one, and we don’t use that one very often for renovation projects.

The FHA 203K loan has two different options, depending on the size of your renovation project. There’s a streamlined loan that is for repairs that are $30,000 or less and a full FHA 203k that is for as much as you need, as long as the house appraises as repaired.

On a full FHA loan, you can do whatever you would like to the home, as long as it appraises.

When you apply for the loan, you need to have two separate contractors come out to the house and write a bid for the repairs that they see that need to be done. These two bids need to match—not on the dollar amount but on what needs to be done to the home. Those bids are then sent to the lender so they can approach for the requested amount.

For the streamlined FHA loan, those repairs can only go up to $30,000 and can’t be on anything structural, so no walls can be knocked out or rooms added. On a full FHA loan, you can do whatever you would like to the home—add or take out walls, add a new master bedroom or bathroom—as long as the house appraises with those items included and it’s under the lending limit, which in our area is $271,000.

If you have any questions about renovation loans, feel free to give me a call. I’d be happy to help you.