2 Closing Costs That Most Buyers Forget to Factor in – and What You Can Expect to Pay
If you’re in the process of buying a home, you probably have your deposit and monthly mortgage charges in a spreadsheet, along with a chart of your other expenses and your monthly income. But when it comes to buying a home, there are lots of different costs that will come into play – and it’s easy to forget something. When you’re preparing to close on your new home, make sure you consider these two closing costs that most buyers forget.
Home Inspection Fees: A Small Charge For Peace Of Mind
Most home purchase agreements are contingent upon a successful home inspection – and if you’re planning to buy a home, you should definitely have it inspected before you buy it. However, home inspectors don’t work for free, and you’ll have to pay a home inspector for a thorough evaluation of the premises. Home inspection fees depend on the kind of property you’re buying, and can vary depending on your location. For a condo unit, you’ll only need to pay approximately $250, but a single-family home might cost up to $500. Luxury properties are often more expensive, sometimes running as high as $1,500, depending on the extensive systems some of these homes have in place.
Private Mortgage Insurance: Obligatory With Small Down Payments
If you’re only planning to make the minimum down payment on your home, you’ll need to buy mortgage insurance. Mortgage insurance protects the lender in the event that you default on your loan. This is an added cost that your lender pays, and in general, almost every lender will pass the cost on to you. You can pay for your mortgage insurance in one large payment, or you can add it to your monthly mortgage payments. Note that if your down payment is less than 20% of the purchase price, you’re legally required to buy mortgage insurance.
Buying a house is a major undertaking, and there are lots of ways that the process could go awry. But a real estate professional like me can help you navigate the industry and get the home you’ve always wanted without any issues.
Contact Jeff Fisher at 602-531-0435, your local real estate expert to learn more.
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