Costs You Should Know Before Buying A Home
Buying a home for most people is the realization of a dream to finally own their own property. While the home buying process can sometimes be a little stressful, the experience can still be fun and successful with some basic knowledge about the market.
It’s important to be aware that the price of the home won’t be the only price you’ll be paying. Through the process of buying a home, there will be other fees and payments that you may have to pay up-front or monthly. If you want to enjoy your new property, be sure to consider all of these costs and ensure you have a large enough budget to cover all of these expenses before you put up the “Sold” sign.
Below is a checklist of possible fees you will need to budget for:
The lending institution which will be providing your loan may require an appraisal be done to the property you are looking to buy. This task is your responsibility and the cost usually ranges from $175 to $300.
This will depend on your lending institution; they will decide whether to include property taxes in your monthly mortgage payments. If they are not added, then an annual proof may be required of the payments.
If the home you want to buy has already been lived in, the lending institution may require a current property survey. The cost generally ranges between $700-$1,000.
Home insurance covers the structure and contents of the replacement value of your home. It is a requirement that assures the lending institution that their loan is protected.
Any new utilities that hook up with the telephone or cables may require an installation fee.
Even simple home purchases should include a lawyer’s guidance and experience. Take your time when looking for a lawyer; consider references, experience and feedback from others who have worked with specific lawyers.
Mortgage Loan Insurance Fee
Mortgage Loan Insurance fees depend on the equity of your home. These fees can cost anywhere between 0.5%-3.5% of the total amount of the mortgage. Payments can generally be done monthly in addition to tax and mortgage payments.
Mortgage Brokers Fee
A fee may be charged by a mortgage broker to source a lender and organize financing for a mortgage broker. It is beneficial for you to look around and consider a few brokers, as some individuals will waive the service fee on your end and instead the lending institution will absorb the cost.
If you’re going to require moving help, trucks, etc. these costs can go anywhere from $50-$100/hour for a van and 3 movers. Costs can be 10-20% higher during peak demand seasons.
This is common for condominiums and rental properties, where payments made are for the maintenance of the property such as grounds keeping, carpet cleaning, shoveling, etc. Costs will differ for every building.
Water Quality and Quantity Certification
If the home you want is serviced by a well, it is best to have it checked by a local expert. The fee is determined on where you live. Having this will certify the quantity and quality of your water.
If the area you live in has gone through local improvements such as sidewalks and sewers this may impact your property tax.
Land Transfer Tax
Applied once the property changes owners. The amount varies.
Make sure to keep all of these surprise costs in mind when buying a home, as these can help you to be more realistic about your budget and expenses. If you’re not sure about hidden fees, make sure to ask your real estate agent to clarify anything you’re unsure about.
What makes it rewarding to get a real estate professional’s help? Be sure to read Understand the Importance of Using a Real Estate Agent to get a better idea of how an agent can help!Don’t miss the Top 11 Things to Know When Buying a Home to learn even more about the home buying process.
Are you ready to find your dream home? Showcase Realty is ready to assist you! Call us today at 704.997.3794 or send us a message here!