f you're home shopping or
in the process of buying 2.) Insurance
property, you want to make
sure you have all your costs Fire insurance or a homeowner's
covered. insurance policy usually needs to
be paid for up front. Although
Home buyer's who purchase a home you may be able to get an
without a real estate agent (or insurance binder from your
sometimes purchase through an company on a payment plan, most
inexperienced agent) can find out mortgage companies require the
too late they don't have enough first year paid during escrow or
money to close and move. closing.
10 most overlooked costs home 3.) Appraisal Fees
buyers miss:
Mortgage lenders require
1.) Property Taxes and appraisals to make sure your
Assessments property covers your loan amount
plus their investment risk. The
Home buyers often need to set up buyer normally pays between
an escrow account with the new $150-$450 to the appraiser.
mortgage lender. This means that
they must pay a portion of taxes 4.) Survey Fees
upfront. In some states, the
seller has already paid the local Some lenders require a property
taxes and this amount must be survey. You may also want a
paid back to the seller at survey if the property lines are
closing. Also, some counties have in question. Survey fees vary
transfer taxes whenever a from $600-$2,500, or more for
property changes hands. large parcels.
5.) Septic System Your mortgage lender adds fees
Certification for processing your loan,
document preparation,
If your new property does not underwriting, closing, funding,
connect to public sewers, you may and sometimes "garbage fees."
need a septic clearance for your Check your estimated costs
lender. Often the home seller statements and look for hidden
pays this cost, but you want to fees. Before committing to a
make sure you get no hidden lender, shop for your best loan
charges or surprises. and compare lender's costs.
6.) Water Quality 8.) Association and
Certification Maintenance Fees
The same holds true for Most buyers understand that a
properties with a well and not condo comes with association
public water service. For your fees. However, some housing
own piece of mind, you will want developments also charge
to check the water quality and maintenance fees. Don't assume
have this clause as a condition that the fees will be nominal.
in your purchase contract. Not Many condos in California have
only do you want to make sure the association fees over $400 per
water quality passes, you want to month. Some of these fees need to
make sure the well has plenty of be paid annually, which means a
flow so you don't run out of home buyer needs to pay upfront.
water.
9.) Utility Service Fees
7.) Miscellaneous Origination
and Loan Fees Check your hook up and
installation fees for water, gas, clients and check out moving
electricity, cable or satellite companies. Prices for truck
TV, phone, trash, sewer and other rental and moving companies vary.
services. Sometimes the water
department covers the sewer and
trash service. These fees quickly Make sure you have all your
add up and you don't want any purchase and moving costs covered
surprises like a $340 water before you make an offer to
deposit required by some purchase a home. You don't want
companies. to find out when it's too late
that you need more money.
10.) Moving Costs
Copyright "© 2005 Jeanette J.
Plan your move before committing Fisher. All rights reserved. (You
to a purchase. Know whether you may publish this article in its
can move yourself or need to hire entirety with the following
professional movers. You may be author's information with live
shocked to find out the costs links only.)
involved. Ask for referrals of
About the Author:
Jeanette Fisher teaches first-time home buyers and beginning real estate investors the six steps to home financing. FRE.E Ebook, "Credit Tips for Mortgage Financing." http://www.recredithelp.com
Source: www.isnare.com
