Hidden Fees to be Aware of When Purchasing a Home

Hidden Fees to be Aware of When Purchasing a Home

Published | Written by Sarah Leland

Hidden Fees to be Aware of When Purchasing a Home

Published by on Feb 1, 2022 6:30:00 AM

Purchasing a home is one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will be other costs associated with your purchase other than the price of the home.

Here are five fees to keep in mind as you begin to budget.
  1. Home inspection. This is a crucial step in the home buying process. The findings that come from the inspection can help you negotiate price and repairs. The cost will depend on a couple of factors, including the home itself and the location.
  2. Title services. Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure to no one will pop up with a claim to the property. Additionally, you may need to buy title insurance which will protect the lender or your investment in the home.
  3. Appraisal fee. Before getting a loan, you will likely be required to get an appraisal of the home to determine its estimated value. This will be conducted by a third-party company and the cost will also depend on the size of the home and location.
  4. HOA fees. Many communities have a homeowners’ association that enforces monthly fees. This money is used for general maintenance and updates to areas like pools, parks, and more. 
  5. Taxes. The taxes each buyer pays at the closing table differ, but it is not uncommon for it to be up to two months’ worth of county and city property taxes. Additionally, there may be taxes for the transfer of the home title.



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