When you are crafting a budget with which to buy a house, you have probably thought about how much the house itself is going to cost.
You've reviewed what your mortgage plus interest will cost you, and how much your down payment will need to be.
But did you know there are other costs to consider? Here are some of them to keep in mind.
First there are the closing costs on the purchase.
These can include all of the application, document preparation and filing, and notary fees, as well as any appraisal costs to see if there is any insect damage or other damage to the house.
If a real estate attorney is involved, there are his or her costs to cover as well.
Often you will have title and deed registration fees when the information gets recorded by the county and these are most often charged by the number of pages.
Closing is a very important step, however, since this is what finalizes the sale.
Closing costs might be able to be negotiated with the seller, particularly if they are anxious to make the deal.
Expect these costs to run you between two and five percent of the overall cost of the home.
These fees can be estimated using some of the free tools available on real estate websites.
Title insurance may also be required, particularly in cases where the house does not already have a clean title.
Unlike other insurance policies, this is usually a one-time cost.
Other typical fees include origination costs, discount points (if you got a discounted interest rate), a credit report fee, and a court courier fee.
Some more unusual ones include a tax service fee that makes sure your property tax payment was recorded properly.
There is also a flood certification fee to see if your house is located inside a historic flood zone.
Then there is the homeowners' insurance.
This is often required by the lending institution since the house is its own loan collateral.
Many times this is factored into the amount of escrow you have to put up.
You might also have to carry mortgage insurance if you took out a loan with a low down payment.
If the area you are moving to is subject to flooding, you will have to take out federal flood insurance.
Regular homeowners' policies do not cover damage done by floodwaters.
If your house is in a flood plain, this can be very costly if you do not take out coverage and water damages or destroys your home.
Don't be surprised if your lender asks you to come up with six months of the estimated property taxes.
These monies will usually go into your escrow account which will later be paid to the county assessor's office.
It can seem like you are being nickel and dimed when you buy a home, but really it's just a reflection of the complex nature of buying a home.
This is why having a Realtor on your side can be the smartest move you make.
Your Realtor will help you navigate the process and explain things to you along the way.