Fees When Buying A HouseIt's a great time to buy a home, but the cost of your new house doesn't stop at just the list price. We've compiled a list of fees when buying a house to get you prepared and properly budgeted before you make an offer. 1. Escrow fees Depending on the terms of your purchase contract with the seller and your choice of lender, you might have to pay money into escrow either before closing or during the time you're paying down your mortgage. 2. Credit report fees Your lender will require a verified credit report. 3. Points or origination fees Each point is one percent of the mortgage value, and the more points you pay, the lower your mortgage's interest rate goes. In some instances, you can get your seller to pay the points for you. Be sure to ask your own broker to investigate for you. 4. Homeowner's insurance fees Most lenders will require insurance before you can take possession of your new house in case of any accidents leading to property damage. This will likely be required by your lender if your down payment is less than 20% of your home's value. You may need to pay as much as a full year's worth of premiums at closing. 6. Legal fees Although not everyone needs the services of a lawyer, if your transaction is too complicated, you'll want an attorney looking out for you. They may be especially helpful if you're purchasing a foreclosure or short sale. 7. State recording fees These are dependent on state requirements. Every region is different, so be sure to research yours to discover what you should prepare for. 8. Notary public charge To verify your identity and protect both you and the lender, you'll need a notary public. 9. Document preparation fees These fees go to your attorney, lender, or broker. 10. Title insurance This insurance will cover you and your mortgage lender if it turns out the seller didn't actually own the property you bought. 11. Tax service fees These are to ensure that your real estate taxes get paid. 12. Property taxes Once you purchase your home, you may owe some property taxes immediately if the seller hasn't paid them covering a time period when you'll own the house. 13. Appraisal fees Important for tax purposes and for mortgage approval, you'll usually have to pay to find out the fair market value of your home. 14. Pest inspection fee: If you're buying a new home, you usually won't be required to pay for this, but is often mandatory for older homes. 15. Survey fee Surveys determine the exact boundaries of your property. However, if you can use an existing survey, you can escape this fee. Though it may seem like a long list, being ready and aware of these fees can make them much easier to deal with. Lender 411 also has lots of resources and tools to prepare you for buying a home and getting you into a house! |
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