4 Overlooked Aspects of Home-Buying That Could Cost You
Buying a home is a big step for most families. A house tends to be the largest purchase a person makes during their lifetime. As you should well know, a lot of expense is involved. You will have to make a monthly mortgage payment for decades to pay off the loan to the bank. You will also have to make a down payment of up to 20 percent of the home’s purchase price. However, there can also be other costs of home buying you have overlooked. Below are four you’ll definitely want to be aware of.
The Appraisal Fee
One expense you may have not accounted for is the appraisal fee. Before you are allowed to buy a home with a mortgage lender, you will be forced to pay to have its value appraised. In the past, the appraisal fee was included as part of closing costs. Today, however, it’s usually demanded up front. According to statistics, an appraisal typically costs between $300 and $400. An appraisal may seem unnecessary at first glance, but it actually helps all involved with the home sale to know the value of the house.
When shopping for a home, the last thing on many people’s minds is closing costs. However, it’s certainly something you will have to pay for if you want to own a house. Closing costs are assorted fees you will have to pay when you sign the closing documents to make the purchase. They will include things like underwriting fees, processing fees, recording fees, title insurance, survey fees and recording fees. You can expect these costs to be up to thousands of dollars. Make sure you ask about closing costs as soon as possible so you know exactly what to expect.
Another cost that should be paid for is a home inspection. While it isn’t mandated, it’s a very good idea. According to the Home Town Team at RE/MAX Integrity, real estate experts in Woodlands, Texas, a home inspection can allow both parties in the transaction to become aware of issues with the property before the sale is completed. That way a proper solution can be found instead of forcing the buyer to take on the full cost or repairs.
You also have to think of costs that will come after the sale has been completed. One of the biggest and most immediate will be moving costs. Moving all your furniture and possessions to a new house in a different area isn’t often cheap. According to US News, moving to a different state could cost over $5,000.
Overall, buying new home can be pretty expensive. You are likely to encounter a few unexpected expenses during the process. It’s a wise idea to spend a good deal of time saving up what you need before you jump into the process of buying a new house.