13 Extra Costs to Be Aware
of Before Buying a Home
Whether you're looking to buy your first home, or trading up to a larger
one, there are many costs - on top of the purchase price - that you must figure
into your calculation of affordability. These extra fees, such as taxes and
other additional costs, could surprise you with an unwanted financial nightmare
on closing day if you're not informed and prepared.
Some of these costs are one-time fixed payments, while others represent an
ongoing monthly or yearly commitment. While not all of these costs will apply
in every situation, it's better to know about them ahead of time so you can
Remember, buying a home is a major milestone, and whether it's your first,
second or tenth, there are many small but important details, not to mention stress
and excitement, to deal with during the process. The last thing you need are
unbudgeted financial obligations in the hours before you take possession of
your new home.
To help homebuyers understand what these extra costs are, and in what
situations they may apply, a free industry report has been prepared called
"13 Extra Costs to Be Aware of Before Buying a Home".
Some of the items discussed
1. Appraisal Fee Your lending institution may request an appraisal of the property which
would be your responsibility to pay for. Appraisals can vary in price from
approximately $175 -$ 300.
2. Property Taxes Depending on your down payment, your lending institution may decide to
include your property taxes in your monthly mortgage payments. If your property
taxes are not added to your monthly payments, your lending institution may
require annual proof that your taxes have been paid.
3. Survey Fee When the home you purchase is a resale (vs a new home), your lending
institution may ask for an updated property survey. The cost for this survey
can vary between $700- $1,000.
4. Property Insurance Home insurance covers the replacement value of your home (structure and
contents). Your lending institution will request proof that you are insured as
it protects their investment on the loan.
complete report NOW to make sure you're budgeting properly for your next
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