Apr 7, 2015

Fees Associated with Buying a House


Buying a house isn’t black and white. There are many smaller fees that come out of the woodwork once you get the process going. It would be nice to take the price tag at face value, but there are many other things that need to be paid for along the way before you move into your new home. This is the main reason why purchasing a home can seem so complicated. Here are some of the other fees that will come up as you move along the home buying process.

1. Home inspection costs can run you over several hundred dollars, but more often than not your mortgage insurer is likely going to require that your new house be checked out before you officially close. That way you can get it documented with exactly what condition the house was in prior to putting money down for it, and insurance companies are also going to want you to get it done. Even if there are no requirements from the mortgage company, insurance company or realtor, it is highly recommended that you go this.

2. Everyone assumes that there are taxes involved when buying a new home, but it can come as a shock to many people just how much that can cost upfront during the closing process. Oftentimes new home owners will have to pay for most of the property taxes and homeowners fees for the year right in the first couple of months, if not instantly. It can feel like a very heavy burden to have to cough up that much money from the get go, so keep in mind that this is likely going to be the case for you as well. Once in a while the additional fees get grouped in with the taxes, and they can be financed with the mortgage loan. Usually it has to be taken care of right away.

3. If your mortgage lender has to do the work to get your credit score and documentation, you can count on being charged for that, too. That is why if you have a chance to attain your credit information prior to the initial application process, you will be very glad you did. While the fees won’t be nearly as costly as some of the others, it would just be an extra stress that can be avoided.

4. On a year-to-year basis, the government has the power to change the zones for flooding areas, and if you happen to buy a house in such a region it is likely that you will have to pay for it. Even though it won’t be too much money, it can seem like just one more way that your wallet is under attack.

5. Depending on the company that you choose to borrow from, there will be a lender's fee that is to be determined by that business. Normally they like to float around the 3% range, but it is important to note it so that you know you will be paying for that fee on top of what you are borrowing from them. It wouldn’t hurt to shop around to see what kind of rates you can get before you fully commit to taking a loan from one of the lender’s businesses, and it is likely that you will be able to find one fit into your needs and hopefully won’t put too much of a dent in your overall spending.

Written by Reza Abadi of USA Mortgage. USA Mortgage is the best company for home loans Columbia MO has to offer!

1 comment:

Translation Services said...

Its tough buying a new place. I am going to buy one later this year, and live in constant fear of unforseen fees and expenses.

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