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Home Buyer's Hidden Costs

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Home buyer's who obtain a home with out a agent (or sometimes purchase through an inexperienced agent) will discover far too late they don't really have the funds for to seal and move.

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Top ten Costs Home Buyers Miss:

1.) Property Taxes and Assessments

House buyers often must setup an escrow account with the new mortgage lender. This means that they must pay a percentage of taxes upfront. In a few states, the seller has already paid the local taxes and also this amount should be reimbursed towards the seller at closing. Also, some counties have transfer taxes whenever a property changes hands.

2.) Insurance

Fire insurance or a homeowner's insurance policy usually has to be covered in advance. Although you may be able to get an insurance coverage binder from your company on the repayment schedule, most mortgage companies need the newbie paid during escrow or closing.

3.) Appraisal Fees

Lenders require appraisals to make sure your property covers the loan amount plus their investment risk. The customer normally pays between $150-$450 towards the appraiser.

4.) Survey Fees

Some lenders need a property survey. It's also possible to need a survey when the property lines are involved. Survey fees vary from $600-$2,500, or maybe more for large parcels.

5.) Septic System Certification

If your new property will not hook up to public sewers, you may need a septic clearance for your lender. Often the home seller pays this cost, however you intend to make sure you obtain no hidden charges or surprises.

6.) Water Quality Certification

This goes true for properties using a well and not public water service. For your own personel bit of mind, you will need to look into the water quality and have this clause being a overuse injury in you buy contract. You don't only intend to make sure the water quality passes, you would like to guarantee the well has plenty of flow which means you don't exhaust water.

7.) Miscellaneous Origination and Loan Fees

Your mortgage lender adds fees for processing the loan, document preparation, underwriting, closing, funding, and sometimes "garbage fees." Look at your estimated costs statements to see hidden fees. Before investing a lending institution, go shopping for your better 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 think that the fees will be nominal. Many condos in California have association fees over $400 each month. Many of these fees have to be paid annually, which suggests a home buyer needs to pay upfront.

9.) Utility Service Fees

Check your attach and installation fees for water, gas, electricity, cable or satellite TV, phone, trash, sewer as well as other services. Sometimes the water department covers the sewer and trash service. These fees quickly add up and also you don't want any surprises like a $340 water deposit essental to some companies.

10.) Moving Costs

Plan your move before committing to an order. Know regardless of whether you can move yourself or have to hire professional movers. You may be shocked to learn the expense involved. Ask for referrals of clients and look for moving companies. Prices for truck rental and movers vary.

Last updated 872 days ago by inciteenergy6