When buying a house, there are several fees and costs involved. There are application fees, points, and closing costs. These fees can range from two to three percent of the purchase price. These fees and costs are not included in the base price of the home. In addition,compare our features there are HOA dues.
Home inspection
Whether you are buying or selling a home, it is important to have a professional inspection. This inspection will tell you specific issues in the home, such as any structural problems. A home inspection is a necessary step before purchasing a home, as major problems can cost thousands of dollars to repair. A home inspector will be able to provide you with a detailed report and pictures to provide more clarity.
Purchasing a house is a significant investment, so it's important to do your research. While not all lenders require a home inspection, a few hundred dollars spent on this service now can save you thousands in the future. This is because a home inspection can reveal hidden problems in the home that the seller may be trying to hide, or may be completely unaware of.
Down payment
Making a large down payment on a house will set you apart from other buyers. It will also indicate your solid finances and will make you less likely to haggle and ask the seller to cover closing costs. Furthermore, a larger down payment will help you qualify for a lower interest rate and mortgage insurance. It will also give you an advantage in multiple-bid situations.
If you're not able to afford a down payment, consider borrowing from a friend or family member. In some cases, you can borrow from your 401k or IRA. In other cases, you may be able to get a gift that will cover the down payment.
Closing costs
The closing costs of buying a house can vary greatly depending on the size of the down payment, type of mortgage and other factors. The state you live in also plays a role in the total closing costs. For example, in New York, closing costs average $8,256, or 2.34 percent of the home loan. In addition, each state has its own rules regarding real estate closings, and some require paying real estate transfer taxes. Closing costs are typically broken down into three categories: mortgage-related, property-related, and annual fees.
A lender will also charge a document preparation fee, which can range from $50 to 600 dollars. And if you didn't buy a homeowner's insurance policy before you bought the house, you'll have to bring the funds to pay for it at the closing.
HOA dues
If you plan to buy a house in a community, make sure you factor HOA dues into your offer. Generally, developers will under-estimate HOA dues because it is easier to sell units with lower dues. However, once a certain percentage of units is sold, the HOA is no longer the developer's property, and it will have to increase dues.
Before closing, ask to see the association documents. You should get copies of these documents at least two days before closing. This way, you'll know what you're getting yourself into before making an offer. This will also help you figure out if the house is right for you.
Utility bills
The cost of utility bills is a major consideration for prospective buyers of new homes to buy. Prices for natural gas and electric have been soaring in recent years, and this upward trend isn't expected to slow any time soon. In some states, electric bills are projected to increase by as much as 15 percent over the next seven years. Cable TV and sewer bills are also not cheap.
The total cost of utilities varies widely by location, number of occupants, and other factors. However, a national average of around $470 a month for electricity and gas is a good guideline. Other factors that influence utility costs include the type of home, size, climate, and neighborhood. Asking the vendor for copies of recent utility bills is a good way to get a better idea of the cost.
