Purchasing a new home is a big decision. For most people, it is one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there are other costs associated with your new home purchase aside from the price of the home.
Here are 5 fees to keep in mind as you start to develop a budget:
1. 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 $1,000 depending on the home and the location.
2. 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.
3. Appraisal fee.
Before getting a loan, you may be required to get an appraisal of the home to determine its estimated value. This will be conducted by a third-party company and the cost can land anywhere between $300 and $1,000, depending on the size of the home.
4. HOA / Condo 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. HOA fees are dependent upon the type of property, the amenities, the expenses covered by the fees, etc.
The taxes each buyer pays at the closing table differ, but it is not uncommon for it to be up to two months’ worth of county and city property taxes. Additionally, there may be taxes for the transfer of the home title.
If you would like more information or need help planning for purchasing a new home, CONTACT US, and we’ll put you in touch with an agent who can help you get your ducks in a row!