13 EXTRA COSTS TO BE AWARE OF BEFORE BUYING A HOME! "The last thing you need are un-budgeted financial obligations creeping up hours before you take possession of your new 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 our 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. Not all of these costs will apply in every situation, however it's better to know about them ahead of time so you can budget properly.

Remember, buying a home is a major milestone. Whether it's your first, second or tenth home, there are many important details to address, during the process. The last thing you need are un-budgeted financial obligations cropping up hours before you take possession of your new home.

Read through the following checklist to make sure you're budgeting properly for your next move.

1-APPRAISAL FEE
Your lending institution will request an appraisal of the property, which would be your responsibility to pay for. Appraisals can vary in price from approximately $200-$450. Remember, if the home does not appraise for the agreed purchase amount and you choose not to purchase that home, you will still be responsible for payment of the appraisal.
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. It is common that an escrow account will be set up at the time of closing. You should consult with your lender regarding this.
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.
5-SERVICE CHARGES!
Any new utility that services your hook up, such as electricity, gas, or cable may require and an installation or transfer fee.
6-LEGAL FEES!
Even the simplest of home purchases should have a real estate lawyer involved to review all paperwork. Shop around, as rates vary greatly depending on the complexity of the issues and the experience of the lawyer.
7-MORTGAGE LOAN INSURANCE FEE!
Depending upon the equity in your home, some mortgages require mortgage loan insurance. This type of insurance can cost you between 0.5%-3.5% of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.
8-MORTGAGE BROKERS FEE!
A mortgage broker is entitled to charge you a fee in order to source a lender and organize the financing. However, it pays to shop around, because many mortgage brokers will provide their services at a lower cost to you by having the lending institution absorb most of it.
9-MOVING COSTS!
The cost for a professional mover can cost you in the range of $50-$100/hour for a van and 3 movers, and 10-20% higher during peak demand seasons. If you are planning on hiring a moving company, it is recommended that you do your homework and check their customer reviews.
10-MAINTENANCE FEES!
Condos charge monthly fees for common area maintenance such as grounds keeping and playgrounds etc.. Often times they will have a transfer fee to the new owner. Costs will vary depending on the building.
11-WATER QUALITY AND QUALITY CERTIFICATION!
If the home your purchase is serviced by a well, you should consider having your water checked by your local experts. Depending upon where you live, determines whether or not a fee is charged, to certify the quantity and quality of the water. Contact your state engineers office.
12-LOCAL IMPROVEMENTS!
If the town you live in has made local improvements, or is planning on it (such as the addition of sewers or sidewalks), this could impact a property's taxes by thousands of dollars. You can check with your city planners office.
13-LAND TRANSFER TAX!
This tax is applied whenever property changes hands and the amount that is applied can vary. Not all states have a land transfer tax, so it is recommended that you consult with your tax adviser.
Presented by Isaac Avilez, Associate Broker at Realty One Group bit.ly/801contact

*I am licensed in the field of real estate and advise you to hire any applicable professional for legal, tax, mortgage lenders, or financial advisers.

*Not intended to solicit property currently listed for sale

Created By
Isaac Avilez
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