It’s hard to fathom how much owning property can change a person’s life. Unfortunately, that life change isn’t cheap, and with it comes a lot of fees and costs that many first time buyers overlook. If you’re buying a new house and want to be sure you’re budgeting well- keep these charges in mind.
You’d hope that it would be easier to accept money from a lender. The last thing a lot of people expect is for the lender to charge a fee for potential home buyers to even apply for a loan. Although not all loan sources charge this, you should keep an eye out for them. Sometimes it’s the best service, and you have to overlook this fee to get what you want.
There’s also a loan fee, which you pay to be able to borrow the money.
Most fees get included, and sometimes buried, under the umbrella term ‘title fee.’
This term can cover many different fees, so when you get this paperwork, make sure to read everything over. You don’t want to head in blindly and sign for anything you don’t need. Closing costs add up, and if you’re not sure about them, you can use a seller closing costs calculator to give you a clearer image of what to expect.
To many, it feels like a given that home sellers should be able to tell you how much their house is worth, but people want to get the most money they can. An appraisal can tell you if the homeowner has dressed up the house to seem worth more than it is, and can empower you to make an informed bid.
Unfortunately, this information isn’t cheap, most appraisals cost anywhere from 200-500 dollars, depending on the area, and you lose that even if you don’t decide to get the home. It’s a good rule of thumb to get an official appraisal, but you need to be sure to keep the cost in mind.
Home Warranty and Insurance
Home warranties can have you back if something happens to the appliances, or systems, in your home. For people buying their first home, and stepping up from renting, these can be a huge relief. Home warranties are around five-hundred dollars on average but can save first time home buyers in the long run.
Home insurance protects your house as a whole and allows you to relax, knowing that if disaster strikes, you’ll be financially protected. Insurance is more of a monthly payment, although you can prepay the full amount if you’d instead do that. On average, home insurance is $35 for every $100,000 the house is worth, which can add up quickly. Home insurance is something you can’t avoid getting for your home. Insurance can protect you from a lot of unforeseen problems and will leave you safe from financial disaster if anything happens to your new house.