Extra Costs to Consider when Buying a Home
Be Informed of the Possible Extra Cost When Buying a Home for a Smooth Transaction
Understanding Additional Costs in Home Buying:
- Appraisal Fee: Buyer’s responsibility to pay for an appraisal if requested by the lending institution.
- 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.
- Property Insurance: Proof of home insurance is necessary to protect the lender’s investment.
- Service Charges: New utilities may require installation fees.
- Legal Fees: Legal assistance during home purchase may have varying rates.
- Mortgage Loan Insurance: Required for some mortgages depending on equity, usually paid monthly.
- Mortgage Broker’s Fee: Mortgage brokers may charge a fee or have the lender absorb the cost.
- Moving Costs: Expenses for moving can increase during peak demand seasons.
- Maintenance Fees: Monthly fees for common area maintenance in condominiums.
- Land Transfer Tax: Applied when property changes hands, the amount can vary.