One of the common mistakes homebuyers do when they start the process of buying a house is to consider other fees that they have to pay
. Most of the time, they are so focused on planning their budget for the major fees they have to make such as the down payment and the monthly mortgage fees that they forget allocating some funds for other common fees and hidden costs.
For instance, a person who wants to buy a Tempe Real estate will look at the prices of some Tempe Homes for Sale, which they will use as standard when making a loan. You should remember that hidden fees can also cost you thousands of dollars or approximately five percent of the price of the house so it is very necessary that you also think about these fees when planning your budget.
Credit Report Fee
You may think that seeing your credit report would give you no costs because of the free credit report you are entitled to every year. However, there are times that the banks or company where you applied your loan from will oblige you to cover the expenses for them to see and validate your report.
Home Inspection fee
You should also get a home inspector that will provide you a thorough report about the house including all the structural details and important information about it. They would need a professional fee so include a budget for it.
Property Tax
You also have to take care of the property tax fees for the house. If the seller had already paid for it, he or she may get a reimbursement from you.
Loan Application Fee
Most homebuyers do not really have enough money on hand they can use to pay for the house that is why they seek the financial assistance of banks and lending companies. Getting a home loan has an application fee and you should be as well be ready for that.
Appraisal Fee
You also need to pay for a professional service of an appraiser who will check the house and calculate for the ballpark costs of the house you plan to buy. This is especially important for the lenders to verify if you are really borrowing the right amount of money for the house.
Notary and Documentation Fee
There are so many paper works that you have to take care of when buying for a house and this includes getting the important documents notarized for legal purposes. With this, you also have to shoulder the notary fees.
Homeowners Insurance Fees
It is also possible that your creditor will ask you to get a homeowners insurance and that means additional fees that you have to handle. There are other hidden costs that may come along the way during the process of real estate investment so make sure that you have an extra budget for it.