Costs In Buying A House
Are you aware of the costs in buying a house? The purchase price is just one of many factors when determining the costs of a home. From homeowners insurance, to taxes and upkeep, these are just a few of many costs.
Here are a few costs to consider when budgeting for your new home:
Real Estate Agent Fees
These are usually paid by the seller, but you may sign a contract saying that your estate agent has been successful in buying your new house, and they might just charge you a nominal fee that generally goes to the real estate brokerage firm. Some people might consider this to be a hidden cost as it is not always factored into the purchase price of the house.
Purchase Price
This is the negotiated price of the home, you are actually paying for the house. Conveyancing fees and Stamp Duty on the purchase price should be factored in as well.
Deposit
You may want to put a down-payment for a loan of the purchase price, depending on your financial situation, your credit score and your goals. In some situations you may qualify for closing cost or down payment assistance, such as the Florida Hometown Hero program.
Interest On Savings
Getting a good return by investing your money in the bank, rather than just keeping it as cash under your mattress, is an excellent way of generating some money without having to do anything.
Closing Costs
These are generally compulsory fees such as title, tax stamps/county fees. Other fees that you may want to consider are mortgage indemnity insurance, lender fees, flood certificate, credit report, survey, pest inspection, 4-point inspection and any escrow such as taxes. You should be aware of any other costs, as HMDA helps protect this.
Appraisal Valuation Fees
A property valuation is necessary before you borrow any money, and you can also identify potential problems with the property during this survey.
When assessing your finances and determining what they can afford, buyers should factor in these extra costs associated with buying a house. At MortgageQuote.com, we can give you the guidance you need to help prevent any delays, however there may be times when things are unexpected or could change without notice.