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Financial
Sep 15, 2016

Don’t Let NC Closing Costs Be A Barrier To Homeownership

Sponsored Content provided by Patrick Stoy - Mortgage Consultant/Owner, Market Consulting Mortgage

In a recent survey on Bankrate's website, North Carolina ranked as the third most expensive state in the nation for closing costs. 

This information was a bit of a surprise to me, considering most of the median home prices in our state are below the national average of $240,700¹, and the value it’s possible to find here is unheard of in many other parts of the country. 

To determine the average amount of closing costs paid by buyers, the survey compared purchase loans of $200,000 that had a 20 percent down payment. Since taxes make up a portion of closing costs, it’s rational to assume that states with a higher median home price were also areas where the closing costs were higher.    

Keeping that in mind, it was no surprise to see Hawaii, New York and Connecticut topped the list of states with the most expensive closing costs. While I’m on the subject, some of the other fees typically paid at closing include: homeowner’s insurance; deed preparation; origination fees; pest and home inspections; appraisals; and interest.

Surprisingly, Delaware and South Carolina were also at the top of the list for most expensive closing costs. Some of the states with the least expensive closing costs also have the least expensive housing markets. South Dakota, Oklahoma, Missouri, Kentucky, Pennsylvania and Wisconsin all had significantly lower closing costs than the national average, which is $2,128.

I am always shocked by what buyers pay in other parts of the country.  The quality of life here in Wilmington and the Cape Fear region is far better than many other residential markets with much higher prices. The natural beauty we have here is an incredible resource. What other states have an extensive, scenic coastline like ours or mountains that rival the Appalachians?

The median home price in Wilmington was around $215,000 in the second quarter of 2016, according to the National Association of Realtors. That’s about $25,000 less than the national average. Considering that, the value you get here is really unbelievable. There are very few markets where it’s possible to live so close to the beach - in a nice house on a big lot - for so little money.

Even though closing costs here might be a little higher than other areas, it doesn’t have to be a barrier. There is always a way to make things happen. Sometimes all it takes is a little conservative creativity and firsthand experience navigating complex transactions. In every deal, there are points of negotiation and many different variables involved, and what appears to be a dead end sometimes turns out to just be a fork in the road.

Being a part of this industry for over 16 years, I have been personally involved with numerous transactions in which it was possible to find a solution to a problem that appeared to be completely insurmountable on the surface. 

That’s a big part of what has kept me interested in this business, and why I find it so rewarding when I am able to help a client achieve his or her goals. For a consultation about how to get pre-approved for a loan and acquire your piece of the Wilmington lifestyle - or for help figuring out how much you will need to bring to the table to purchase a home - contact me at the number below.   

Patrick Stoy (NMLS Numbers 39527 and 39166) has 16 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or 910-509-7105.

¹The National Association of Realtors, data from the second quarter of 2016.
 
 

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