Tuesday, November 25, 2014

The Additional Costs of Buying a Home

Buying a house is no walk in the park. It'll take more out of your pocket than the mortgage, for sure. As a homebuyer, don't forget to factor in the following expenses. Save up, spend wisely, and allow for some margin in your budget for additional costs.

Inspection and Appraisal. To make sure that the house is in sound shape, contractors and home inspectors are often called in to appraise its quality and condition. Sure, you’ll need to spend more – but in order to save more. Don’t skimp out on this precautionary measure. A thorough appraisal will make sure that every penny you’re spending on the house is well worth it.

Loan application fee. Banks often ask for a one-time fee when you’re applying for a loan. Though they may sometimes waive this fee, factor it into your budget, just in case.

Homeowners insurance. Lending agencies may require insurance on the home. But even without this prerequisite, every homeowner is encouraged insure their property. Note that additional provisions in your insurance will add to its total cost (take, for instance, an added provision to cover for earthquakes). 

Repairs and Extermination. Moving into older houses or foreclosures often entail repairs, renovation, and extermination of pests. Even newer homes need to be updated at times, whether it’s the plumbing, wiring, landscaping, or a matter of meeting safety codes in the region.

Moving. Buyers with a lot of furniture often have to turn to moving companies. If you’d rather not spend on the service, enlist the help of friends or family with suitable vehicles to help you move out. Account for how much gas will be needed for the trip, or for multiple trips.

Homeowners Association and Condo Fees. You’ll need to pay a monthly or quarterly fee if your home is part of a homeowners’ or condominium association. Take note that the association may also charge you for renovating or remodeling certain elements of your property.

Property taxes. Taxes also factor into one’s expenses. There’s a handful that any buyer must see to: documentary stamps tax, the transfer tax, the registration fee, and realty taxes.


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