We take it that you are really interested in buying a property and we commend you for that. Now, let us help you get to good feel on the process that you will soon be going through. It is not the easiest process to go through but with the right people guiding you, you could find yourself enjoying a glass of your favorite drink or beverage right in the living room of your dream home.
Before we loss track though, let us go into the meat of this topic and that is getting to know what you would and could be required to pay when buying a real estate property. Of course, the selling price is not the only amount that matters here. Here’s a quick rundown of what you have to be ready to pay for:
1. Private mortgage insurance. This will be required if you opt to take out a loan with small down payment. Of course, the lender would want to protect their investment too.
2. Homeowner’s insurance. This is very necessary. In fact, you might even be required to secure this policy before the close of the transaction.
3. Title insurance. If you want to protect yourself from faulty titles, you would need this one. It is unlikely but the person selling the property might be a fraud and this type of policy will protect you in such cases.
4. Appraisal fees. For tax purposes, the property you will be buying or just recently bought would have to be appraised to determine its fair market value.
5. Escrow fees. In many transactions, the services of an escrow would be needed especially during the closing stages of the transaction. The escrow would ensure that your money would be delivered to the seller once you have received the property.
6. Points fees. It is the fee you have to pay the bank or any lender for their services of creating the loan. A point is 1 percent of the loan.
7. Credit report fees. If you are going to take out a loan, you would need to submit a verified credit report and that would cost money.
8. Document preparation fees. As the name suggests, this is the fee for the preparation of the required documents for the loan aside of course from the credit report.
9. Survey fee. This will be required if an existing survey of the parcel of land cannot be located.
10. Property taxes. If the seller has already paid in advance the property taxes for the house in question, you would end up owing them.
11. State recording fees. This would depend on where the property is located.
If you want to learn more about these fees, don’t hesitate to contact our professional real estate agent you can trust.