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What Are The Common Fees To Expect When Buying A Home?


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Blog by Ray Smiley | September 11th, 2014


One of the things that every home buyer would want to know about is the different expenses linked to a real estate transaction. Of course, you have prices linked to negotiating the new home you are eyeing on. Apart from this, there are yet some other expenses to deal with. Knowing these fees will help you establish a better budget plan.

Property survey fees



Property surveys are made so that the lot measurements, boundaries and easements of the property will be identified. If the home is a resale then the survey is readily available. If it is not, then expect around $2,000 for the fee to obtain the survey.

Appraisal fees

Mortgage lenders understand the importance of home appraisal. This process will assure you that you are not paying too much for your home. Appraisal fee is computed based on several factors, property size and the complexity of the appraisal process included. It can cost between $150 and $250. You will be lucky enough though if the lender will waive this fee.

Lender application fee

Lender application fees do not apply to all lenders so it is wise to ask your lender about it from the very first time you talk to them. This will be required basically to help them process your application.

Mortgage broker fees

There are two types of fees that your mortgage broker may require from you when you opt to use their services. One would be the upfront fee or the mortgage broker fee. Although this type of fee is not always charged by the mortgage broker, it will not hurt to ask about it. Another is the mortgage loan insurance that comes when your down payment for your home is less than 20%.

Insurance fees

Aside from the mortgage loan insurance required by the mortgage broker, there are yet other insurance fees to consider. One is the home insurance that will help you cover the total mortgage value. Typically, this will be required by the lawyer before you can proceed with the purchase.

Another type of insurance is called the title insurance which ranges from $150 to $300. This will give you coverage especially when there are certain issues connected with your property's title. It would be best to get this insurance because it costs far lesser than having to spend for costs connected with property title issues.

Deposit

When you have made an offer to purchase a property, you should expect that the seller will require a deposit from you. The deposit will secure the transaction and is an assurance for the seller that you are more than interested in making the purchase. This is an out-of-pocket expense, meaning, you are expected to pay for it from the money you have on hand and not from a loan you obtain from a financial institution or a lender.

These are but some of the fees you should expect when buying a property to settle in. You need to be prepared for such expenses. If you are quite unsure of how the entire purchase process goes, it would be wise to seek our help as real estate brokers in this business.