Cost Of Buying A Home
It’s easy to focus on mortgage planning and completely forget about the additional costs of buying a home. While each purchase will have its own specific costs, and not all will apply to every home buying experience, there are a few standard costs that you can plan for:
Needs are typically things that can’t be changed later on. Examples include:
- Home Inspection Fees – It’s recommended to always complete a home inspection for any home you are considering buying.
- Survey Fees – A cost typically paid for by the seller, the land survey will determine the exact property lines and are required when purchasing a resale home.
- Appraisal Fees – Many mortgage companies will require an independent appraisal of the property to determine the properties value.
- Legal Fees – There are 3 attorneys in every financed transaction- 1-Seller attorney, 2- Buyer attorney, 3- Bank attorney. The attorney will be required to review documentation, transfer the title and ensure everything is in order. The buyer typically pays for only the bank and buyer attorney in the transaction.
- Mortgage Loan Insurance – If your down payment is less than 20%, expect to pay MIP or PMI based on the type of loan and size of your loan.
- Mortgage Application Fee – A few financial institutions will have their own application fee for mortgage requests. This fee will be returned if your application is denied.
- Interest Adjustments / Interim Interest – Depending on when your mortgage payments come out, there may be an interest adjustment costs. This could bump up or pro-rate your first mortgage payment.
- Closing Costs – A number of adjustments are made during the closing process, which are summarized on your lender’s closing cost statement These adjustments are usually for things like downpayment, bank fees, underwriter fees, pre-paid property taxes, homeowners insurance.
- Moving – Many buyers forget to factor in the cost of moving, which can cost you money. Whether you’re renting your own truck or hiring professional movers, plan for these moving expenses.