Don’t Let these Costs Surprise You when Buying Your First Home

First-Time Homebuyers in SandySo, are you ready to buy your dream house in Sandy? Owning a home is not just about paying what’s on the price tag. Extra costs will always be part of the bargain. This is something that surprises many homebuyers because such costs are rarely in black and white. City Creek Mortgage recommends using tools such as a monthly payment calculator to know how much you need for a house purchase. To give a better estimate, know these fees.

Legal Costs

Have you ever heard of conveyance? Investopedia defines this term as any legal matter that pertains to home buying and selling. A lot of work is involved here, including lease examination, local authority search, and land registry search. If you’ve never bought a home before, you will be surprised at the many legal fees involved.

Building Inspection Fees

Time mentions that inspection is necessary, especially if you’re dealing with a secondhand home. Even unused homes have problems that only an expert can identify. Without an inspection, any repairs will be your responsibility. Expect to pay as much as $600 for a good property inspection. Of course, this is on the higher side–you can get the same service for $200 in some areas.

Closing Fees

Sealing the mortgage deal and signing on the dotted line is not the end of the process. You still need to pay the relevant Sandy homeowners’ association taxes, loan origination fee, and other closing costs. The U.S. Census Bureau estimates that these costs range between $6,000 and $17,000 depending on the sale of a home.

Appraisal Fee

Be ready for extra fees in terms of appraisal for your mortgage. This is charged directly to you. It pays an independent licensed appraiser, who determines your home value and shares the information with the lender. This can cost you $600.

You will most likely continue paying these even after you’ve signed the papers. Now that you have an idea of the costs, prepare adequately.