The fees you might see when buying a home
So, you’re ready to buy a home. Whether it is your first home or your twentieth, there are some surprise fees that can easily add up if you are not prepared. Take a look at some of the unexpected bills that can come about during your home buying process, what they mean and how to handle them.
Simply put, a home inspection is an assessment of the home you are about to purchase. They are always conducted by a home inspector who is qualified and trained. These type of assessments can help you foresee potential problems and bring those issues to the table for negotiation. You can choose the inspector, so if you know someone, great! If you don’t, your agent has some great contacts you can use.
The process of appraising the home helps your mortgage lender see what the home is really worth what you’re willing to pay. Appraisers take a look at the home for things that might devalue or increase the property’s worth. In short, you will need to pay a fee that allows your lender to assess the home based on location, structural condition, recent sales, and amenities. Some additional things the appraiser looks for is code violations that might need to be fixed before the loan is approved.
You might want to just take their word on it, but it’s best to get a survey report of the property before you buy. This helps determine the exact size of the lot and can save you from disputes down the road. In the survey report, you will find the location and existence of the property. Also, you will see the distance of the property to neighbors. This is the only official and reliable way to get/confirm basic info about the property at hand.
This fee is part of your closing costs. It covers the costs of transferring the legal ownership, the “title”, to you. The fees come from the issuing of the title insurance policy for the lender.
Sometimes lenders will charge you a fee to submit your application for a loan. To cut down on fees like this, shop around and ask your agent who they recommend.
All of these fees can seemingly come out of nowhere if you are not ready and informed. It’s important to always do your research, sit down with your agent (as a buyer, it’s free to do this) and ensure you’re saving. If you add up the high end of each estimated fee above, you’re at $1,675, so be sure to shop around and know what fees are added to your buying process to avoid any sticker shock.
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