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5 Hidden Costs Of Buying A House
5 hidden costs of buying a house!.
Now when important decision – owning a home – made, it is time to understand what`s it take to be able to buy a home! Let`s say you do not have any debt, you have great credit history and quite good credit score, and steady income, especially if you are the first time homebuyer you most likely have no or little knowledge that in your home buying journey, besides down payment, mortgage payments, you will come across those five home buying costs:
Cost of home inspection – Buying a home is the biggest investment. That’s why home inspection is highly recommended to perform. Professional and licensed home inspector will evaluate the house`s biggest and most expensive elements of the house such as HVAC system, plumbing, electrical and roof. So before the house is purchased the buyer has a peace of mind or at least knowledge what to be preparing for. Every time final report will be sent to the buyer with pictures and brief description what has been found. And if any major issued discovered then the buyer together with their Real Estate professional will put it together and will negotiate repairs or compensation with the seller.
Price for home inspection usually is about couple hundred dollars and it has to be paid before inspection is performed.
Cost of Appraiser – It is other hidden cost in home buying process unless the house has been purchased for cash. Whenever, you are taking a mortgage to buy a home, like most of homebuyers, every lender will require home to be appraised. Lenders has to be confident that the house purchase price and market value are the same or higher. Usually, price for appraiser goes from $300-$400 and paid at the closing.
Earnest Money Deposit – this will be first money you send on the house. This deposit usually goes to Title company as guarantee that the seller is dealing with serious buyer who intent to buy particular property. Earnest money deposit is part of the down payment and usually 1 percent or 2 percent of the purchase price, however in Real Estate everything is negotiable.
Closing costs – amount buyer has to pay at the closing, which includes lenders fee, underwriter fees, lender`s title policy, recording fees, taxes fees etc. You can request itemized estimate from your lender or just use rule of thumb that usually closing costs goes from 2 percent to 3 percent from the house purchase price.
Realtor® fees – Some buyers decide to go thru the home buying process without the Professional Real Estate Agent, thinking to save some money. In Central Florida the seller of the property pays compensation for both agents in the transaction. If you are considering new construction, remember that rep on the site works for builder and it is beneficial to have professional Realtor® helping you.