Attention Buyers: Unfortunately when buying a home, your total cost of the home is not your total cost of the process.
Oftentimes buyers are mislead by agents to believe that the final price of the home is all they will have to pay. In real estate however, looking for homes and buying them is a process that takes not only time but more of your money as well. Here at BridgeView we are open to discussing all possible costs of this process with you and help you discover your true budget for all extra costs. On a typical house we recommend setting aside a few thousand dollars to add on top of the house price to cover other fees.
Many buyers will have to pay an origination fee from their mortgage which will cover interest and the lending cost. A home inspection is another smart investment, even if it is not required. By getting a home inspection done it will further ensure that you are making a sound purchase or expose something in the home that may need to be fixed. As discussed in yesterday’s blog, property taxes are often expensive and when buying a new property, one is usually asked to pay a few months upfront.
An appraisal will also need to be done by the bank so that they may determine what the place is worth. Private Mortgage Insurance is also a common place where home buyers have to put down money. This insurance depends on your credit rating and down payment of the property. There are plenty of other pre-occupancy costs that will need to be taken care of including several types of insurance. Flood insurance, homeowners insurance, title insurance and home insurance are some possible insurances you may need to have as a buyer and should look into. Survey costs and credit report fees also should be taken into account.
Hopefully this information helps you as buyers get your budget situated for the home of your dreams! Please don’t hesitate to call any of our agents today to start this process of finding a home.