When a real estate novice makes an initial foray into the world of buying their first St. Cloud house, the first task is pinpointing how much they can afford. First-time buyers are especially prone to one beginner’s mistake: it’s easy to overlook the bagful of ancillary costs that are part of any home purchase. These peripheral charges carry percentages that may look minor—but taken together, are anything but.

Whether you call them “closing costs” or “settlement fees,” including them in preliminary budgeting is mandatory. That’s why government-sponsored Freddie Mac makes the list of included elements part of its “Understanding Costs” web educational site. Nine are named—and although they include some that apply only when outside financing is relevant (and all are not usually part of any single purchase), it’s useful to become familiar with what they entail:

1.      Government recording costs

2.      Appraisal fees

3.      Credit report fees

4.      Lender origination fees

5.      Title services

6.      Tax service fees

7.      Survey fees

8.      Attorney fees

9.      Underwriting fees

Since Freddie puts their cost as “between 2% and 5% of your purchase price,” including them in first back-of-the-envelope budget estimates is a fundamental part of identifying which properties you will be able to afford. Freddie’s 2%-5% range leaves a lot of leeway—but don’t worry. I can help you nail down a tighter estimate for which of those costs are likely to apply in buying your first St. Cloud house.

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Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in:

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Saint Cloud 320-259-4554

Princeton 320-983-3555

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Minneapolis 763-565-2000

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Litchfield 320-298-1140

Premier Real Estate specializes in MANY areas around Central MN including Saint Cloud, Waite Park, Rice, Royalton, Sartell, Royalton, Little Falls, Cold Spring, Saint Joseph, Elk River, Monticello, Ramsey, Saint Michael, Andover, Ham Lake, Anoka, Champlin, Buffalo, Glencoe, Brownton, Silver Lake, Kandiyohi, Dassel, Minneapolis, Maple Grove, Saint Louis Park, Saint Paul, Robbinsdale, Crystal, New Hope, Brooklyn Center, Brainerd, Nisswa, Aitkin, Albany, Coon Rapids, Sauk Rapids and more!