Buying a home is the most expensive thing that you’ll ever do. With prices on the rise, getting the money together for a deposit is tough but, unfortunately, it doesn’t stop there. A lot of people think that once they’ve found the perfect house and secured a mortgage, they don’t need to pay any more. In reality, there are a lot of other costs that you need to deal with and if you don’t factor them into your budget, you’re going to start life in your new home in a very bad financial position. Before you sign any paperwork, make sure that you’ve considered these hidden costs of buying a home.
Estate Agent Fees
There are some sites online where you can find properties for free without having to pay estate agents, but if you’re going to find the perfect home, you need some professional help. The best properties don’t usually appear on the free sites and you might not know much about the neighborhood and whether the price is reasonable or not. That’s why you’re far better off going with a real estate agent, but you’re going to have to pay a fee for that service so don’t forget that.
When you’re applying for a mortgage, the lender needs to have the house valued so they can decide how much they’re willing to lend you. Unfortunately, you’re the one that has to pay to have that valuation done and it can be quite expensive. The price ranges from around $150 all the way up to $1500 depending on the size of the property. That’s a lot of extra money and if you haven’t budgeted for it, you might be in for a bit of a shock.
You’re probably spending every penny you have on this new house so you don’t want to rush into things. If you buy a house that has lots of problems, it’ll be a massive financial burden. That’s why it’s so important to have a survey done by experts like Allcott Associates. They’ll be able to spot the tell-tale signs of structural problems, damaged roofs or black mold. If you don’t know what you’re looking for you won’t pick up on this stuff and you’ll end up buying a house that needs a lot of expensive work done to it.
There are a lot of legal hurdles involved with buying a house and the paperwork is pretty complicated so you’ll need a solicitor to help you out with it. You can’t really do it on your own because you can’t afford to make any mistakes.
Electronic Transfer Fees
Once everything is sorted, it’s time to send over the money for the down payment on the house. Even then, you’re going to get charged. It’s not much but most people will charge you about $50 for the privilege.
When you add up all of those extra costs, you can expect to pay upwards of $5000 at least during the process of buying your house, so make sure that you’ve got that extra cash there.