Costs associated with Buying
You've found your dream home, the seller has accepted your offer, what happens next? Before you get the key, there are a lot of items to take into consideration.
The following process of confirming information and passing ownership of property from seller to buyer can be bewildering. As a purchaser, you will receive so much information and sign what seems like endless piles of documents and will have to present payment for various costs. It's the fees associated with the purchasing that many times remain a mystery to many buyers who may simply hand over thousands of dollars without actually knowing what they are paying.
As a responsible purchaser, you should be familiar with these costs. Although many of the fees may vary, here are some typical fee:
Appraisal Fee: This fee pays for the appraisal of the property. You may already have paid this fee at the beginning of your loan application process.
Inspection Fee: This fee pays for your property home inspection.
Condominium Document Review: This fee is paid to have a professional review you condominium documents and help guide you to make the right decisions.
Title Insurance Fees: If you are choosing to purchase this, it is a one time fee with your lawyer.
Home Insurance: This is required before the bank transferring funds. The cost can vary household to household.
Mortgage Insurance: If you buy a home with a small down payment, a lender usually requires that you pay a fee for mortgage insurance. This fee protects the lender against loss due to foreclosure. This can be paid in a lump sum or amortized with your mortgage payments.
Utilities: Depending on whether or not you are transferring your services or setting them up for the first time there may be initializing costs.
Legal fees, title transfer and tax adjustment: Lawyers charge for time and disbursements for the process of transferring the title from the seller's name into the new home owner's name. On top of this, the annual property tax amount will be adjusted and paid as well.
Make sure you consult a real estate professional in your area to find out which fees--and how much--you will be expected to pay during the closing of your prospective home.
