In addition to the purchase price, there are many costs to be aware of when buying a home. Extra fees associated with buying a home could put you in an unexpected financial bind if you're not prepared. While there can be more (be sure to ask your agent & your loan officer!) here are the 10 most common extra costs you should be prepared for.
- Property Taxes - you will most likely have to pay your pro-rated share of the current year's property taxes at closing.
- Survey Fee - if you choose to get a survey there will be a cost with that. It typically is between $400 - $1,000 depending on the size of the property.
- Appraisal - if you are getting a loan you will be required to get an appraisal. They are typically around $400 and you may have to pay for this upfront to your lender before closing.
- Home Inspection - I highly recommend you get a home inspection before purchasing any property. You need to know what you're getting into and any unexpected expensive repairs so you can be prepared and negotiate them with the seller. Cost is typically between $350-600 depending on the size of the property.
- Insurance - home insurance covers the replacement value of your home, this will vary so get the cost from your trusted insurance agent.
- Utility Fees - the utility companies (CFPUA, Aqua, etc) might require you to pay an installation fee &/or deposit.
- Legal Fees - you need to have a lawyer review all paperwork and handle the transaction. Cost is often around $900.
- Lending Fees - ask your loan officer. There will be in origination fee, possibly a credit check fee, and more. Your loan officer will be able to let you know how much you're looking at.
- HOA Fees - typically pro-rated at closing. Make sure to ask if there are any special assessments confirmed or pending.
- Well or Septic tests - if there's a well or septic it's advisable for you to get them tested while still in your due diligence period of the contract.
There could be more fees and expenses when buying your home and the amounts mentioned above are just estimates, so be sure to ask your agent and loan officer exactly what fees you should expect and for what amounts so you're prepared. Buying a home & moving can be stressful enough, I want to make sure the process is affordable for you and you're not left in a financial bind with added stress.
When you're ready to purchase a home let me know, I'd love the opportunity to help you find the home that's perfect for you. If you hear a friend or family member mention they are thinking about buying a home please don't keep me a secret, I'd love to help them as well!
- Brittany