Buying a house is an exciting venture. However, excitement can betray you in buying without carefully considering the overall cost. Apart from the house and lot, there are other expenses inherent in a home purchase. While these seem small individually, the sum might surprise you. Here’s a list of the major costs you have to prepare for:
Home Appraisal and Inspection
To know the true value of the house, you will need home appraisal, which can cost between $200 and $450. On the other hand, a separate inspection should be conducted to know which parts of the house need repair and maintenance and how much this would affect its value. Make sure your home is inspected for molds, termites, and other forms of damage.
Mortgage Application Fee
Applying for a mortgage costs around $500. This serves as payment for the initial service provided by the mortgagee to you. In most cases, this fee is non-refundable, even if you’ve decided to withdraw the application after.
“Closing costs” refer to the total of several other expenses that has to be made to finally transfer the property to the new owner. These typically include mortgage insurance, real estate taxes, and homeowners insurance. All in all, this can be a huge chunk in your budget.