Hidden Fees To Be Aware Of When Purchasing A Home

Tips For Buyers

Purchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will be other costs associated with your purchase then the price of the home. Here are 5 fees to keep in mind as you begin to budget.

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 $00 depending on the home and the location.

Title Services

Title Services encompass the transfer of the title from the seller and a thorough search of the property's records to ensure that no one will pop up with a claim to the property. Additionally, you may nee to buy title insurance which will protect the lender or your investment in the home.

Appraisal Fee

Before getting a loan, you will likely 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 $1,00, depending on the size of the home.

HOA Fees

Many communities have a homeowner's association that enforces monthly fees. This money is used for general maintenance and updates to areas like pools, parks, and more. Typically HOA fees are around $200 per month.

Taxes

The taxes each buyer pays at the losing 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.