When people think of buying a home, they just about the amount the down payment and the monthly mortgage payments.
Some don’t think about the other fees and costs. Be sure to factor these unexpected costs of buying a home into your budget:
Home inspection: It is something we recommend all of our buyers get. It helps buyers learn all about their new digs. Unless the seller has already had an inspection or it is negotiated that the seller will pay for it, the bill goes to the buyer. They can cost between $300 and 700, depending on the size of your house.
If you want mold, asbestos, termite, or radon testing, the cost just went up.
Closing costs: This will consist of mostly fees. Prices vary, but it rarely is more than 3 percent of the purchase price. It goes towards:
- Government filing fees
- Real estate broker commissions/fees
- Loan application fees
- Appraisal fee
- Processing fees,
- Flood/hazard insurance premiums (paid in advance to qualify for mortgage)
- Mortgage insurance (if your downpayment is less than 20 percent)
- Cost of transferring title and deed, or title search fees and title insurance
- Escrows, impounds, and other piggyback payments.
Here’s a nice little site showing closing costs by state.
Property taxes: This wonderful bill comes right around the holidays and is due in January. When we work with buyers, we make sure they know the cost of property taxes as it says so right on our MLS sheets.
Furniture/decorations: When you move from an apartment to a home, you will need more furniture. If you’re moving from home to home, sometimes you need a few more items. These miscellaneous items can add up.
(Side note: If you are looking for home decorating ideas, our pinterest is great!)
Appliances: Unless your home price comes with everything, that new fridge will be near the top of your priority list.
New service costs: Signing up for gas, electricity, cable TV, internet, and other services often come with a one-time sign-up or hook-up fee. They also include hours spent on hold attempting to activate service and troubleshoot why that new service isn’t working.