Bo Lee - CENTURY 21 Commonwealth



Posted by Bo Lee on 3/25/2018

Buying a home is one of the most expensive undertakings that youíll ever have in your lifetime. You probably have spent months upon months saving for a downpayment in order to make your home purchase. The problem is that after they believe their savings are complete, many buyers discover unexpected costs that go along with buying a home, making the entire process even more stressful. You should be prepared for many different kinds of costs that go beyond the sticker price of a home. Below, many of those surprising costs are laid out in detail. 


Closing Costs


Closing costs can be anywhere from 2-7% of the purchase price of a home. Closing costs cover quite a bit including:


  • Inspection fees
  • Appraisal
  • Title insurance
  • Property taxes
  • Mortgage insurance
  • Underwriting fees
  • Recording fees
  • Loan origination fees

Depending upon the type of loan you get or your specific circumstances, your closing costs could be even more. Keep in mind that you wonít find out your specific closing cost amounts until the purchase of the home is well underway. You can talk to your realtor and lender ahead of time to be prepared for your own situation.


Closing costs are also negotiable, so donít forget to ask questions. Certain administrative fees, for example, are often unnecessary and can be waived.  


Low Appraisals


If you have a low appraisal on your home, you may need even more cash on hand. In order to meet loan and home value requirements, lenders wonít approve a loan for an amount thatís higher than the home is appraised for. In this case, if you still want the home, youíll be left to come up with the difference in cash. Otherwise, you could be forced to walk away from the deal and lose some money in the process. This is one of those home purchase emergencies that you should simply be aware of. It can be an emotional experience to get a low appraisal on a home, but remember that there are sensible ways to deal with this dilemma.       


Moving Expenses


Many buyers forget in the excitement of buying a home just how much it will cost to move. Whether you hire a moving company or do it yourself, moving can be expensive. Youíll need a truck, packing supplies and a way to pay (or simply thank) the people who help you to move. 


The Things You Need For Your Home


Your home wonít come with everything that you need. You may have to buy a refrigerator, have some repairs done, or simply get furnishings for the home. Donít strap your budget so thin that you wonít be able to buy a sofa until six months after moving into the home.   




Categories: Financing