In addition to a down payment, here are some other expenses home buyers need to be aware of.
“Just because you’re spending hundreds of thousands on a home doesn’t mean you should be comfortable throwing thousands of dollars at fees.”
Be sure to ask your lender or Realtor®
any questions you have concerning the fees you’re being charged. In
addition, your real estate agent may be able to help you negotiate the
cost of some of these home-buying expenses.
Inspectors will look for any signs of structural issues, mold and
leaks. They also assess the condition of the roof, gutters, HVAC, water
heater, plumbing, electrical system, and more.
lenders require an appraisal report to ensure that the property is
worth the sales price agreed upon by the buyer and seller.
Loan application: The lender
will charge fees for running your credit report and processing your
application. Be sure to ask for an itemized list of these charges.
Mortgage loan origination fees:
These upfront costs, which are associated with underwriting and funding
the loan, are quoted as a percentage (typically 0.5 to 1.5 percent) of
the total amount borrowed.
Private mortgage insurance (PMI):
Lenders generally require buyers to put down at least 20 percent of the
purchase price of the home. Otherwise, PMI is required to protect the
lender if the buyer should default on the loan. The PMI should be
automatically canceled once the buyer reaches 78 percent of the
This fee ensures that the seller’s tax payments on the property are up
to date and that the buyer’s payments are correctly credited.
Property survey: This report outlines the boundaries, dimensions and major features of the property.
Title companies charge fees to cover the title search, notary costs,
government filing fees, and more to ensure the buyer receives a clear
title to the property.
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