Published on December 21st, 2016 | by admin0
The Unseen Costs of Buying A Home
Even if you are excited about owning your first Tswrealestategroup.com home, you might also be just as anxious about the potential risks. Maybe you don’t even know what these risks might be; and that is actually good news because, perhaps, you might relax just a little bit if you do learn a little more about the potential risks associated with buying your first home.
Obviously, buying a home—whether it is your first or your fourth—is a major financial commitment. As a matter of fact, this is the largest investment most people make in their lifetime. Typically it involves applying—and getting approved—for a mortgage, which is a home loan the bank issues you so you can pay a small amount of the total value of your home every month.
While getting approved for a mortgage typically involves a pretty extensive process that ensures you will not have any problems—or maybe minimize your potential issues—did you know that there are other costs that you might not be able to foresee?
WHAT ARE UNSEEN COSTS?
These are costs that are not attached, necessarily, to the “sticker price” of the house you buy, just like the sticker price of a car. It is important to be aware that although you can negotiate the price you might pay up front. For example, when you buy a car you have to pay sales tax, registration, title transfer, and, of course, regular upkeep and maintenance.
When you buy a home you will find there are similar additional costs.
WHAT ARE THESE COSTS?
The most common of these unseen costs are probably the closing fees. Closing fees is a collection of fees you have to pay once the house is sold. However, here are several of the other things you might have to pay during the home buying process:
- You must pay an Appraisal Fee to have someone analyze the value of the home (or homes) you are considering buying; they make sure you are paying an appropriate price
- You will pay for any Credit Reports you order from a bank to get a copy of your credit report
- You pay a Lender’s Origination Fee just to process your loan application
- You must pay a Flood Life of the Loan Fee to have the government track the property’s flood zone status
- You pay a Tax Service Fee to make sure that all the previous taxes on the property are up to date