After months/years of hard work, you were finally able to save enough make down payments and then offset the rest through mortgage. But wait a minute – do you even know that certain hidden charges come with buying a home and are you prepared to pay them?
You will have to pay for home appraisal and the money would be used to evaluate the real value of the property you intend buying. You wouldn’t want to overpay for the property, and so you have to first appraise the property. Depending on the size of the property, cost of appraisal may raise around $500.
A professional inspector will have to come inspect the property for flaws and defect. The inspection will cover the roof, water system, foundation, the electrical and the heating system. Professional inspectors’ work may cost up to $500.
Cost of closing ranges between 2% and 5% of the actual value of the property. In most cases, the seller pays everything. But there are times when you will be required to pay some fractions of it. Aside closing cost, you may have to pay filing cost, mortgage insurance, charges for title search and property taxes.
There may be need for further inspections some of which may include chimney, property lines, ancillary inspection and presence of termites. Though this may not seem like much individually, but when tallied together, cost of inspection can break you.
You may have to purchase a home warranty. Though costing hundreds of dollars, a home warranty takes care of costly home repairs which oftentimes run into thousands of dollars. Depending on your negotiation skills, you can get the property owner to foot the bills of the warranty.
If you purchase a property that is in a bad shape, you make have to spend considerable amount of money on repair works especially if it isn’t covered in the agreement you have with the seller. Ensure the cost of painting, repairs and upgrades is well factored in your budget.
Unplanned costs often do arise after moving into a newly purchased property. For instance, the plumbing system of your new home can develop faults even though it passed inspection. So, it is good to plan ahead for this cost.