Hello, I am new in the US and my relocation package mentions: "Covered New Home Purchase/Closing Expenses Required financial fees charged by the lending institution, including loan origination charges not expressed as a percentage of the loan amount. Appraisal fee Credit report Settlement or closing fee Title search Title insurance Notary fee Attorney’s fees (reasonable and customary) Government recording and transfer charges Survey General home inspection, pest or termite inspection, and radon inspection State transfer tax and escrow fees Note: Note: The items listed above are not all inclusive. Eligible expenses may vary by local custom. Your consultant will advise you regarding expenses covered by the Company." I am just wondering what would be the dollar value for the mentioned expenses above? I'm budgeting for 650-800k for housing.
If you're new in the US I'm assuming no credit history. Relocation package at most will cover 20k for housing. Do you have the money for the 20% down payment for a 600k plus home? How about taxes? How do you plan on getting the loan with no credit history?
I have about 200k cash. I don't know about taxes. Do you mean annual taxes i need to pay for housing? For credit history i work with HSBC so they have my non-US credit history and they're OK with that (I spoke with a branch manager in the US)
Assuming location is Seattle given it's Expedia?
I'm getting an offer from FB in Menlo Park. So would be in the Bay Area for 1 br apartment
Those fees covered by your relocation package should add up to 3k-6k. Many buyers opt for a slightly higher rate and get lender's credit in return to cover for these fees. Even without a higher rate, lender's credit are offered. But since your fees are covered by your company, you have options to negotiate an even lower rate and forgo any lender's credit. The company money will be taxable so keep that in mind.
You mean they opt for higher rate when they're offered relocation package like this?
No, shop for the lowest rate and not be interested in lender's credit or concerned with closing costs
I don’t think it’s worth rushing to buy right away for reasons posted above. You need to get accustomed to the new location, explore the different neighborhoods and then settle down on it, get your home offer accepted, loan approved, etc. Take your time on it.
Bruh you joking? If you have $200k lying around why the fuck would you spend it on a house? Even so in bay area where the housing market bubble is going to collapse pretty soon? I would use that money in bonds/stocks and live as frugal as possible
The reason why I'm asking is, sometimes these initial costs could go up to 50k ish. I also thought the property market collapsed since last year.
What is the urgency to buy house now?
Not urgency, it's just if it makes sense to take advantage of this
Advantage of what? You just moved here. I would advice to get used to the surrounding and culture before making the purchase.
In the US, there's a special kind of FD called "options". You can get upto 1000% return on your initial investment. Head over to r/wallstreetbets for a step by step guide. Why buy one house when you can buy a neighborhood?
Lol
Nope. Not worth buying just for that. All those together account for max 3% of home price. It doesn’t cover agent fees.
Give yourself 6 months of getting to know area and do research. Get a realtor to help you get to know area. Also you will meet people at work who can and will offer to show you around.
By 6 months I won't be able to use the housing benefits that i list above
You are kidding right ?
I said I am new in the US. Does it look like I'm kidding?