Purchasing a home is arguably one of the most significant financial decisions. As you start your hunt, don’t forget there will be other costs associated with your purchase than the home price. Here are five fees to keep in mind as you begin to budget.
- Home inspection: This is a crucial step in the home buying process, and the findings from the inspection can help you negotiate price and repairs. Generally, you can expect to pay between $300 to $500 depending on the home and the location. You’ll have to pay the inspector in advance.
- Title services: Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure that no one will pop up with a claim to the property. Additionally, you may need to buy title insurance to protect the lender or your investment in the home.
- Appraisal fee: Most lenders require home appraisals to substantiate the sales price. Costs can range from $300 to $1,000 and are typically paid at closing.
- HOA fees: Many communities have homeowners’ associations that require monthly payments, and the money pays for general maintenance and updates to areas like pools, parks, etc. Typical HOA fees can vary greatly depending on the amenities provided for the community.
- Taxes. The taxes each buyer pays at the closing table differ, but it is not uncommon for up to six months’ worth of county and city property taxes depending on how much the seller has pre-paid. Additionally, there are taxes for the transfer of the home title.
