You probably already have a list of reasons why the Mountain State is a great place to live.
What you need to know is how much money you’ll have to put down for the down payment, closing costs, and other expenses associated with buying a house.
In this guide, we’ll look at the Fairmont and Morgantown metro areas in North Central West Virginia, where First Exchange Bank is based, to give you a sense of the average costs and total amount you’ll need.
Ready to take your first steps toward homeownership in the Mountain State?
Let’s get started!
Median Home Prices in North Central West Virginia
Here is the middle point of the real estate market in each of the towns where First Exchange Bank has a location:
As you can see, North Central West Virginia still offers an affordable real estate market for homebuyers. Next, let’s look at the costs associated with buying a home.
How much can you put down?
Saving for a down payment is the top priority of many homebuyers. Many lenders require 20 percent down if you want to avoid paying private mortgage insurance (PMI). However, currently at First Exchange Bank we only require a 10 percent down payment to avoid PMI. That is just one of the many benefits we can offer homebuyers as a community bank that services all of our mortgage loans in-house.
Paying for a Professional Home Inspection
This is one expense you may not be aware of, especially as a first-time buyer. Here’s what you need to know:
- Once you make an offer on a house and the seller accepts, you’re officially “under contract.”
- This is the time to schedule a professional home inspection.
- While not mandatory, it is highly recommended.
- A good home inspection will tell you a lot about your soon-to-be new house.
- If any big issues turn up on the report, you can renegotiate the sales price or ask the buyer to make repairs before closing.
- The cost of a professional home inspection depends on the size and age of the house.
- $370 is the average cost of a home inspection.
Closing Costs in West Virginia
The home buying process begins with your down payment, which is a factor in how much house you can afford to buy. At the end of the home buying process comes Closing Day and closing costs. Your mortgage lender and buyer’s agent will provide an estimated and final list of closing costs so you know how much to bring to Closing. Here are the most common expenses included in closing costs:
- Underwriting and processing fees
- Origination fees
- Credit report
- Appraisal fees
- Flood certification (if applicable)
- Tax service fees
- Title search and lender’s title insurance
- Owner’s title insurance policy
- Recording fee mortgage
- Recording fee deed
- State mortgage tax/stamps
- Transfer tax
Overall, you can expect to pay about 2-5 percent of your total loan in closing costs.
What’s in a mortgage payment?
Figuring out how much you can afford to spend on a house is about more than the amount you can pre-qualify for. You also need to make sure your monthly mortgage payment fits your budget. That payment consists of a variety of factors, including the amount you put down and borrow, your mortgage interest rate, homeowner’s insurance, mortgage insurance (if applicable), and property taxes. A good rule of thumb is to keep your monthly housing payment (whether rent or mortgage) at 30 percent or less of your monthly income.
Budgeting for the costs of homeownership after you move in
When you own your home, you need to budget for more than the monthly mortgage payment. You will have to cover all of the utilities and set aside money for routine maintenance, one-time repairs, and discretionary purchases such as new furniture.
First Exchange Bank is your local home loan lender
At First Exchange Bank, we have a rich history of helping West Virginians become homeowners. Turn to us for local expertise, personalized service, and flexible mortgage loans
. All of our home loans are serviced in-house and decisions are made right here in North Central West Virginia. Give us a call to learn more about our home loan options and find the best one for you!