Costs Associated with Buying a Home That You May Not Be Aware Of
There are many costs on
top of the purchase price that should be figured into your calculation of
affordability. Some of these costs are one-time fixed payments, while
others represent an ongoing monthly or yearly commitment. Not all costs
apply to every situation but it is better to be informed in case they apply to
yours.
Appraisal Fee
Fee charged by an expert
to estimate, but not determine, the market value of property. Appraisals
can vary in price from approximately $175 -$ 350.
Mortgage Loan Insurance Fee
Depending upon the
equity in your home, some lenders require mortgage loan insurance. This type of
insurance will cost you between 0.5% -3.5% of the total amount of the
mortgage. These are generally monthly payments.
Attorney Fees
Buying a home will
probably be the largest and most significant purchase you will make. A lawyer
can help you avoid some common problems with a home purchase or sale and review
all paperwork involved in the purchase. Shop around, as rates vary greatly depending on the complexity of
the issues and the experience of the lawyer.
Property Insurance
This covers the
replacement value of your home and is required by your lender.
Survey Fee
Most lenders require a survey. The survey determines that there are no
encroachments within the property lines and shows where the house is located on
the property. Depending on the size of the property and state, the fees
can vary from $225 to $400.
Mortgage Brokers Fee
A mortgage broker is
entitled to charge you a fee in order to source a lender and organize the
financing. Some brokers waive this fee however, so ask around.
Pest
Inspection Fee
This fee is paid to a termite company to inspect for wood-destroying
organisms, including dry rot.
If you are thinking of purchasing a Mankato home for sell, please contact me and I will be happy to answer any questions you have about these fees.