The Hidden Costs of Home Buying
If you’re in the market for a new home, you’re probably really focused on your finances and how you can invest the right amount of money to get the home of your dreams. But in addition to thinking about how to get a substantial loan from a lending company like Crawford Park Financial, there are other hidden costs that are associated with homebuying that you may not be aware of if you’re a first-time homebuyer. Continue reading to learn more so you can really budget appropriately and not be caught by surprise.
Home Inspection and Survey Fees
Prior to finally closing on your home, the mortgage insurer will probably require that you have a home inspection performed by an expert. This can cost a few hundred dollars. Bear in mind that even if you aren’t required to have a home inspection, it really is a good idea to pay for one because it can find problem areas in your home that would need to be addressed before you move in.
You might also need to have a survey professional check your property to determine the exact boundaries of your land. This will cost you an additional few hundred dollars.
Real Estate Agent and Attorney Fees
Your real estate agent worked hard to help you find the home you want and close the deal, so you’ll need to pay an agent fee. And you’ll also need to hire a qualified real estate attorney to look over all of the contracts and paperwork involved with the transaction, so you’ll have to pay a fee for him or her as well.
Various Fees
At closing, you’ll also pay a few other fees that you should be aware of, so be sure to factor these additional costs into your budget:
- Appraisal fee – This will determine exactly how much money the property is really worth.
- Lender origination and credit report fees – This is basically the fee that you pay to have a lender process the loan application. This fee can be surprisingly high. And when your lender accesses your credit report, you’ll also need to cover the cost of doing so.
- Government recording charges – Essentially, this refers to the local and state governments’ cost for recording your loan, mortgage, and deed documents.
- Lender’s title insurance and title services – These costs are related to the property’s title, which will be transferred to you, the buyer.
- Tax service fee – Though usually a minor additional cost, this is a service that will ensure that all of the taxes that have been paid by previous homeowners are up-to-date.
- Flood life of the loan – Because the government will track any changes that occur to the home’s flood zone status, you’ll need to pay a minor fee.
Whether you’re investing in apartments that you’ll rent out to generate extra income or you’re in search of your first ever single family home for your growing family, keeping these hidden costs in mind while shopping for any property will ensure you establish the right budget at the start of the homebuying process.
