Home buyer's who buy a home with no agent (or sometimes purchase via an inexperienced agent) can find out too late they don't really are able to afford to close and move.
Top Costs Home Buyers Miss:
1.) Property Taxes and Assessments
Homeowners often must create an escrow account with the new mortgage company. This means that they have to pay a portion of taxes upfront. In some states, the owner has recently paid the area taxes which amount has to be reimbursed for the seller at closing. Also, some counties have transfer taxes whenever a property changes hands.
Fire insurance or a homeowner's insurance policy usually needs to be covered up front. Even if you be capable of getting an insurance coverage binder from your company over a repayment plan, most mortgage companies need the 1st year paid during escrow or closing.
3.) Appraisal Fees
Mortgage lenders require appraisals to ensure your home covers your loan amount plus their investment risk. The purchaser normally pays between $150-$450 for the appraiser.
4.) Survey Fees
Some lenders demand a property survey. It's also possible to need a survey when the property lines are involved. Survey fees differ from $600-$2,500, or more for large parcels.
5.) Septic System Certification
If the new property will not connect with public sewers, you might need a septic clearance for the lender. Usually the home seller pays this cost, but you want to make sure you receive no hidden charges or surprises.
6.) Water Quality Certification
This holds true for properties using a well rather than public water service. For your own personel bit of mind, you will want to look into the water quality and possess this clause as a overuse injury in your purchase contract. Not only do you intend to make sure the water quality passes, you would like to ensure the well has lots of flow so that you don't exhaust water.
7.) Miscellaneous Origination and Loan Fees
Your lender adds fees for processing your loan, document preparation, underwriting, closing, funding, and quite often "garbage fees." Look at the estimated costs statements to check out hidden fees. Before investing in a lending institution, look for your very best loan and compare lender's costs.
8.) Association and Maintenance Fees
Most buyers realize that a condo comes with association fees. However, some housing developments also charge maintenance fees. Don't believe that the fees will probably be nominal. Many condos in California have association fees over $400 each month. Many of these fees must be paid annually, which means a home buyer needs to pay upfront.
9.) Utility Service Fees
Look at the attach and installation fees for water, gas, electricity, cable or satellite TV, phone, trash, sewer and other services. Sometimes water department covers the sewer and trash service. These fees quickly mount up and you don't want any surprises like a $340 water deposit essental to some companies.
10.) Moving Costs
Plan your move before investing in an investment. Know whether you can move yourself or have to hire professional movers. You could be shocked to find out the expenses involved. Request referrals of clients and look for movers. Prices for truck rental and moving companies vary.