Extra Costs to Consider when Buying a Home

Understanding Additional Costs in Home Buying:

1. Appraisal Fee: Buyer’s responsibility to pay for an appraisal if requested by the lending institution.
2. Property Tax: Lending institution may include property taxes in monthly mortgage payments. Annual proof of tax payment may be required if not included in mortgage.
3. Property Insurance: Proof of home insurance is necessary to protect the lender’s investment.
4. Service Charges: New utilities may require installation fees.
5. Legal Fees: Legal assistance during home purchase may have varying rates.
6. Mortgage Loan Insurance: Required for some mortgages depending on equity, usually paid monthly.
7. Mortgage Broker’s Fee: Mortgage brokers may charge a fee or have the lender absorb the cost.
8. Moving Costs: Expenses for moving can increase during peak demand seasons.
9. Maintenance Fees: Monthly fees for common area maintenance in condominiums.
10. Land Transfer Tax: Applied when property changes hands, the amount can vary.