Fees to be aware of when purchasing a home
Purchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will be other costs associated with your purchase then the price of the home. Here are 5 fees to keep in mind as you begin to budget. Always ask your agent what applies to you and your situation!
Home inspection. This is a crucial step in the home buying process. The findings that come from the inspection can help you negotiate price and repairs. Generally, you can expect to pay between $300 to $500 depending on the home and the location. If you add on any other inspections there will be a fee as well. This could include, wood destroying insects, radon, water, septic, property boundaries etc. There will be additional costs depending on the types of inspections you choose. These are paid for at the time the inspection is being done.
Title services. Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure to no one will pop up with a claim to the property. Additionally, you may need to buy title insurance which will protect the lender or your investment in the home.
Appraisal fee. Before getting a loan, you will likely be required to get an appraisal of the home to determine its estimated value. (In most cases, but not all) This will be conducted by a third-party company ordered by the mortgage lender.
HOA fees. Many communities have a homeowners’ association that enforces monthly fees. This money is used for general maintenance and updates to areas like pools, parks, and more. Typical HOA fees are around $200 per month. This is all dependent on the association. Some associations have a one time fee you pay when moving into the community. Your agent will be able to pull this information for you.
Taxes. The taxes each buyer pays at the closing table differ. All taxes will be pro rated for the day of closing. The seller will be reimbursed for anything that they had already paid. This will all get rolled into your closing cost figure. The lender and title company will work together to get these figures to you.
