13 Extra Costs to be Aware of Before Buying a Home

"The last thing you need is unpaid financial obligations that appear hours before you take over your new home."

 

Whether you want to buy your first home or upgrade to a bigger one, there are a lot of costs - in addition to the purchase price - that you need to account for when calculating affordability. These extra fees, such as taxes and other extra costs, can surprise you with an unwanted financial nightmare on the closing date if you are not informed and prepared about it.

Some of these costs are one-off fixed payments while others are a fixed monthly or annual commitment. Not all of these costs will apply in all situations, but it's better to know about them in advance to plan your budget accordingly.

 

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

 

1. Appraisal Fee

Your lending institution may request an appraisal of the property for which you would be responsible. Pricing can vary from approximately $ 175 to $ 300.

 

2. Real Estate Taxes

Depending on your down payment, your lending institution may decide to include the property tax in your monthly mortgage installments. If property taxes are not added to your monthly payments, your lending institution may require proof of annual tax payment.

 

3. Survey Fee

When the home you are buying is being resold (as opposed to a new home), your lending institution may ask for an updated real estate survey. The cost for this survey can range from $ 700 to $ 1,000.

 

4. Property Insurance

Home insurance covers the replacement value of the home (structure and equipment). Your lending institution will ask for proof that you are insured as this protects their investment in the loan.

 

5. Service Fees

Any new connection tool, such as a telephone or cable, may require an installation fee.

 

6. Legal Fees

Even with the simplest home purchases, a lawyer should get involved to review all the documents. Shop around as rates vary greatly depending on the complexity of the problems and the lawyer's experience.

 

7. Mortgage Insurance Fee

Depending on your home equity, some mortgages require mortgage insurance. This type of insurance costs between 0.5% and 3.5% of the total amount of the mortgage. Usually, payments are made monthly in addition to the mortgage and tax payments.

 

Also Read :  Questions To Ask When Buying A Home Checklist

 

8. Mortgage Brokers Fee

The mortgage broker has the right to charge a fee to find a lender and arrange financing. However, shop around as many mortgage brokers will provide their services for free by outsourcing to a loan institution to cover the costs.

 

9. Moving Costs

The cost of a professional removal can cost you in the following areas:

• $ 50-100 / hour for a van and 3 people to move, and
• 10-20% higher in periods of greatest demand.

 

10. Maintenance Fees

Homes charge monthly fees for the maintenance of common areas, such as ground maintenance and carpet cleaning in the hallways. Costs will vary depending on the building.

 

11. Water Quality and Quality Certificate

If the house you are buying is served by a well, you should consider having the water checked by local experts. Residence determines whether a fee is charged for certifying water quantity and quality.

 

12. Local Improvements

If the city you live in has made local improvements (such as adding sewers or sidewalks), property taxes could be affected by thousands of dollars.

 

13. Land Transfer Tax

This tax is charged each time the property changes hands and the amount applied may vary.

 

 

Thinking about BUYING or SELLING a Home,

Parveen Tiwari can help you and if you have any questions in regards to real estate, then you must call Me today! at

647-494-0009

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Parveen Tiwari

647-494-0009

Sales Representative

 

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