5 Things You’ll Have to Pay for as a Homeowner1/28/2011 Not all costs associated with a home purchase are obvious or apparent. If you’re a first time home buyer and you’ve never bought a home before, you may be surprised when you learn about some of the fees you’ll have to pay. Don’t be alarmed by this. Instead, read as much as you can about getting a mortgage and owning a home and the costs involved. This list outlines the major expenses, both common and uncommon, you should be aware of before you buy a home. Down payment. Everyone knows about this one. Make sure you know how much cash you’ll need to put down for a new home before you start looking for a home to purchase. Some programs, like the FHA loan program, allow for minimal mortgage down payments, but conventional homebuyers will need to come up with significantly more cash. Closing costs. The costs of closing a loan deal are often overlooked. This set of fees includes appraisal fees, origination fees, and other significant but often minor expenses. Get a Good Faith Estimate (GFE) from your lender as early in the process as possible to get an idea of what you’ll have to pay at closing. VA funding fee. This fee is not very large, but it applies to every VA home loan made. If you’re a veteran and you’re planning on taking out one of these loans, plan ahead for this fee. Prepaid interest. This is sometimes considered a closing cost. Other lenders will list it separately or require you to pay for it on a different date. This interest amount covers the lapsed time between the funding of your loan and your first mortgage payment Home maintenance. You’ve just purchased a new home. You don’t have a landlord anymore. You’re responsible for maintaining and keeping up your own property. The costs of repairs and regular maintenance can add up. Make sure you calculate this into your new budget. |
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