13 Extra Costs to be Aware of Before Buying a Home

Home
>
Mortgage Refinance
>
13 Extra Costs to be Aware of Before Buying a Home

13 Extra Costs to be Aware of Before Buying a Home

Whether you're looking to buy your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you're not informed and prepared.

Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation, however it's better to know about them ahead of time so you can bud-get properly. Remember, buying a home is a maj or milestone. Whether it's your first, second or tenth home, there are many important details to address, during the process. The last thing you need are unbudgeted financial obligations cropping up hours before you take possession of your new home. Read through the following checklist to make sure you're budgeting properly for your next move.

1. Appraisal Fee

Your lending institution may request an appraisal of the property, which would be your responsibility to pay for. Appraisals can vary in price from approximately $175 -$ 300.

2. Property Taxes

Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If your property taxes are not added to your monthly payments, your lending institution may require annual proof that your taxes have been paid.

3. Survey Fee

When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $190 - $1,000.

4. Property Insurance

Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan. Beware! Some homes may not be insurable. Make sure you have an insurability clause in your purchase contract.

5. Service Charges

Any new utility that services your hook up, such as telephone or cable, may require an installation fee.

6. Escrow and Document Preparation Fees

Escrow fees are split between the buyer and the seller in Colorado. However, additional fees will be charged for the buyer's mortgage closing. This can include first and second mortgages. In addition to the "Doc Prep" fees charged by the lender, some lenders will e mail the loan documents and therefore the escrow or title company may charge a electric to paper fee.

7. Mortgage Loan Insurance Fee

Depending upon the equity in your home, some mortgages require mortgage loan insurance. This type of insurance will cost you between 0.5% -3.5% of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.

8. Mortgage Brokers Fee

A mortgage broker is entitled to charge you a fee in order to source a lender and organize the financing. However, it pays to shop around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.

9. Moving Costs

The cost for a professional mover can cost you in the range of:

?$50-$100/hour for a van and 3 movers, and
?10-20% higher during peak demand seasons.

10. Maintenance or HOA Fees

Condos charge monthly fees for common area maintenance such as grounds keeping and carpet cleaning in hallways. Costs will vary depending on the building.

11. Water Quality and Quality Certification

If the home you purchased is serviced by a well, you should consider having your water checked by your local experts. Depending upon where you live, determines whether or not a fee is charged, to certify the quantity and quality of the water.

12. Local Improvements

If the town, city or county you live in has made local improvements (such as the addition of sewers or sidewalks), this could impact a property's taxes by hundreds of dollars.

13. Metropolitan or Special Tax Districts

This is a unique tax district set up by the developer to finance all aspects of the physical infrastructure such as streets, sewer and even recreation centers or golf courses. The developer only has to put up a small percentage of monies for these costs and the rest are floated with bonds and added to the homeowners tax bills until paid off. The arrangement can work nicely when there are plenty of homebuyers to pick up the tax bill. But, in a down market, watch out...you could end up holding the bag when there are not enough buyers to fund the bonds.

Are you looking for Real Estate in Denver Colorado? Visit http://www.realtyoasis.com to find current information and resources about home sales in Colorado. Realty Oasis Metro Brokers offers the top realty expertise and resources to help you find your dream home. Also check out our current home listings in Colorado at http://www.realtyoasis.com/listings/resi dential.asp. We have extensive home listings in Parker, Highlands Ranch, Aurora, Centennial and all cities in Colorado's Front Range.

Mark Eibner is the cofounder and Broker owner of Realty Oasis. When you hire Mark you also hire an entire team of professionals. Each staff member performs a specialized part of the buying and selling process. This support team helped place Mark among Denver's Top 5 Realtors from 1997 through 1999, and in the #1 position in 2000.

In The News:

Washington Times
The Truth About Mortgage Refinancing Revealed By Connecticut ...
SBWire (press release), WI - 16 hours ago
Westport, Connecticut based Mortgage Broker Don Caiati reveals mortgage refinancing secrets at a new web site that is full of free reports, a home buying ...
Refinancing suddenly booms Honolulu Advertiser
Lenders Backlogged By Refinancing Rush Washington Post
Low Mortgage Rates Bring Refinancing Boom MSNBC
Forbes - Washington Timesall 25 news articles

WJBF-TV
Average Mortgage Rate Hits 5%, Lowest in Decades
New York Times, United States - 8 hours ago
Of course, buying a home is a more lengthy process than simply calling up a mortgage broker to refinance, and activity typically slows during the holiday ...
US Banks Offer Mortgages Below 5% After Fed Action Bloomberg
Rates lowest since '71; time to refinance? Modesto Bee
Long-Term Mortgage Rate Falls Again Wall Street Journal
Forbes - Boston Globeall 837 news articles

Cardoza proposal could aid housing crisis
Stockton Record, CA - 1 hour ago
Under the Cardoza plan, the payment on that mortgage refinanced to 4 percent fixed rate would drop to $1194 a month. Contact reporter Bruce Spence at (209) ...

REFILE-UPDATE 1-US mortgage demand dipped before Fed move-MBA
Reuters - Jan 7, 2009
The jump in applications during December may have been driven by homeowners already "on the fence" and prepared to refinance on a drop in mortgage rates, ...
Mortgage applications down in latest survey Forbes
Week-to-week mortgage applications down 8.2% MarketWatch
Fewer apply for home loans; credit line delinquencies increase Los Angeles Times
KVOA.com - Kansas City Starall 63 news articles

Boston Globe
Fed’s Rosengren Calls for ‘Concerted’ Fiscal, Monetary Policies
Bloomberg - 4 hours ago
... to purchase or refinance homes,” Rosengren said. The average rate on a 30-year fixed-rate mortgage dropped for a 10th week to 5.01 percent yesterday, ...
Rosengren sees path to recovery Boston Globe
Fed's Rosengren says recession more severe than thought Reuters
all 50 news articles

Boston Globe
Congressional Press Release on Mortgage Deal
Wall Street Journal - 8 hours ago
"Despite efforts by Congress to address this issue, not enough lenders have come to the table to help borrowers with bad mortgages refinance into new, ...
Citigroup reaches agreement with key senators on mortgage ... Minneapolis Star Tribune
Citigroup agrees to allow judges to help modify some mortgages IdahoStatesman.com
all 542 news articles

TopNews
Question & Answer on mortgage refinancing
Boston Herald, United States - Jan 1, 2009
If I refinance the mortgage on my current house, will I hurt my chances for getting a loan for a new place later on? A: No. Refinancing a loan shouldn’t ...
Mortgage Rates Hit 37-Year Low Poynter.org
30 Year Fixed Rates Drop to 5.10 percent Best Syndication
Home-Mortgage Rates' Next Stop: Below 5% Wall Street Journal
Ventura County Star - Wall Street Journalall 457 news articles

Refinancing shoots through the roof
Plano Star Courier, TX - 14 hours ago
“Quite a few people have remortgaged,” said Craig Jarrell, loan officer with Pulaski Mortgage. “Most people who refinance are new homeowners as recent as ...

Mortgage refinancing skyrockets
Cincinnati.com, OH - Jan 3, 2009
... 2009 With US mortgage rates the lowest in 30 years, local lenders say they've seen a strong surge in loan applications as homeowners seek to refinance ...
Waco banks seeing a boom in mortgage refinance applications Waco Tribune Herald
Borrowers seeking to refinance may face challenges WTOP
As mortgage rates slide, refinancing applications take off Dallas Morning News
all 15 news articles

Congressman sees support for home refinancing bill
Central Valley Business Times, CA - Jan 8, 2009
“So many folks have found themselves underwater in their mortgage … they can’t refinance,” says Mr. Cardoza. Often those who have lost their investments in ...
Cardoza submits plan to refinance mortgages Merced Sun-Star
Congressman Cardoza Introduces Housing Legislation ABC30.com
Cardoza sponsors bill to reduce mortgage payments, stabilize ... Central Valley Business Times
all 5 news articles

mortgage refinance - Google News

Your Ad Here

13 Extra Costs to be Aware of Before Buying a Home

Mortgage Refinance Mortgage Refinance