13 Extra Costs to Be Aware
of Before Buying a Home
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Whether you're trading up to a larger home or looking to buy for the very first time, in order to accurately calculate what you can afford, you need to factor in the extra costs - on top of the purchase price - that come along with the purchase of a home. No one wants to be surprised with an unwanted financial nightmare on closing day because they were not properly informed of extra fees, such as taxes and other additional costs.
Some of these costs represent an ongoing monthly or yearly commitment. Others are one-time fixed payments. Not all extra costs will apply in every situation, but knowledge is power. It's better to be aware of all possible extra charges ahead of time so you can budget properly.
Buying a home is a major milestone. Whether it's your first, second or tenth home, a certain measure of stress, excitement, and a boatload of details come with the territory, so the last thing you need are unbudgeted financial obligations in the hours before you take possession of your new home.
Remember, buying a home is a major 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.
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