13 Things You Can Expect to Pay for Before Buying a House
You might be focused on that big number — the mortgage payment — while you’re looking for a house but don’t forget about all the other costs associated with buying a house. They can pile up and overwhelm you if you aren’t aware of them. Here are some things to know about fees you might face as you buy a house.
An appraisal fee will run around $300 to $500 and will show up on a loan estimate or good faith estimate. Most of the time, the appraisal fee is paid out-of-pocket but it can sometimes be rolled into closing. Check out these tips to successfully purchasing your first home.
The survey fee takes care of verifying the property lines and making sure fences are in the right spot. However, it isn’t required in every state.
Flood Determination Assessment
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A flood determination assessment is something that comes up and is usually around $10 to $20, but it’s used by lenders to find out if a property is in a flood zone. Lenders have to get a flood determination assessment to determine if the home has the proper amount of insurance. Here are 22 secrets your real estate agent isn’t telling you.
The closing fee is paid to the title company, escrow company, or attorney conducting the closing. Some states require a real estate attorney be present at every closing. This is a fee that is separate from the escrow deposit, which requires up to two months of property tax and mortgage insurance payments. Here are 10 important things to consider before buying a house.
A mortgage application is used by some lenders to try to get home buyers committed to them through a $400 to $500 fee. Investopedia calls it an excessive fee that should be avoided.
Credit Report Fee
Mortgage lenders have to run a credit report on you if you’re buying a home, and sometimes they’ll try to charge you between $30 to $50 per report.
An origination fee is usually collected after a loan is approved as part of the closing costs. It is between .5 and 1 percent of the sale price. The origination fee typically covers the cost of paperwork, verifications, and calculations to figure out the mortgage. Here are 13 of the biggest regrets from first-time homebuyers.
Each attorney’s rate varies, but it’s usually around $400 to have an attorney involved in the loan transaction. Find out if it’s the right time to move for you.
Mortgage Broker Fee
If you choose to work with a mortgage broker, it’s going to cost you. A mortgage broker helps you find a loan, but they’ll charge you 1 to 2 percent of the home’s purchase price.
Between the time you close and make your first mortgage payment, lenders will likely expect you to pay any interest that accrues during that time. Sometimes you’ll have to pay upfront at closing. Check out these 39 secrets home inspectors aren’t telling you.
State Recording Fee
The sale of the property needs to be recorded with your local government, and you can be sure there are fees associated with that. Check with your county and city government to learn exactly how much they are.
Lender’s Title Insurance
Also known as a loan policy, lenders will require it to protect themselves if there is an error in the title search or if there’s a claim of ownership on the property after it’s sold. Find out what to do when you first move into a home.
Owner’s Title Insurance
There is also the owner’s title insurance that a home seller can purchase to protect them in case there are title problems or if there are claims of ownership made on the property. Next, read up on the 35 things all homeowners need to know.