Fees saved from buying house with cash

[photo]

Does anyone know what the various fees are that are associated specifically with obtaining a mortgage that wouldn't be needed if a house were purchased with cash?

An appraisals and title search would be highly recommended even with cash, so they wouldn't count.

Mortgage-specific fees would be loan origination fee, points, private mortgage insurance, and such.

[97guns]

i have 2 mortgages one with ing costed me either $600 or $900 and my loan with a credit union was 1200 or $1500. $300-350 goes for the appraisal.

[photo]

I'll state it another way: when buying a house, what fees are specific to obtaining a mortgage, that you wouldn't have with paying cash?

[Money Gal]

photo, what the prior poster was telling you was that closing costs due to the bank/mortgage process are quite minimal.

Avoidable costs when not mortgaging with a traditional bank:
-Points on the loan (but there are 0 point loans you could choose)
-Loan origination fees (there are many loans without this fee that you could choose)
-Home Appraisal (but I would have this done anyhow if you are not able to do a full comparables assessment on the property. I would not use the Realtors comparables report for this purpose)
-Credit Report fee (like $25-$40 the bank charges you)
-Property Tax Escrow account is not needed (so it saves you 2 month buffer that bank escrow likes to keep on hand)

Then there are inspections the bank may require that you could skip, but it would be foolish to do so unless you can perform the inspections accurately yourself:
- Pest/Termite inspection
- Radon testing (some banks/areas may require this)
- Home Inspection for general condition/issues
- Septic Inspection
- Flood Insurance -- if you are in a flood plain, but no mortgage, you will not be required to have insurance, but again it would be a little foolish to skip it.
- Home Owners insurance -- not required to have it if there is no mortgage, but foolish not to have it.

[bjl584]

Originally Posted by photo

Does anyone know what the various fees are that are associated specifically with obtaining a mortgage that wouldn't be needed if a house were purchased with cash?

An appraisals and title search would be highly recommended even with cash, so they wouldn't count.

Mortgage-specific fees would be loan origination fee, points, private mortgage insurance, and such.

Many times banks require certain inspections like mold, termites, maybe a home inspection before they will grant financing. There are also fees with writing up the mortgage itself. Most of those could be avoided if you are a cash buyer.