There are hidden costs to buying a home that you need to be aware of as a homebuyer.
When purchasing a home, there are several costs you need to budget for aside from the price of the home itself.
First is the home inspection fee. In this area, a home inspection typically costs between $300 and $500, depending on the size of the home. You’ll also have to deal with other specialized inspections, such as a termite inspection, which costs anywhere from $75 to $150.
Next, you’ll need to bring additional cash for the closing costs outside of your lender fees (if you’re paying with financing). These costs include your appraisal fee, which is usually around $450, and insurance fees. Oftentimes, lenders require that you pay a year’s worth of home insurance up front, which can cost anywhere from $1,200 to $3,200.
After that, you may have to fund an escrow account, since it’s a requirement of many lenders. Funding an escrow account simply means you put money aside into an account that allows your lender to pay your annual taxes and insurance fees. Most lenders prefer that you have three months’ worth of reserves for this.
“Oftentimes, lenders require that you pay a year’s worth of home insurance up front.”
Lastly, there are moving costs to consider. If you have to hire a moving company, for instance, you’ll need to know in advance what you’ll have to pay. We know plenty of movers who charge fair rates and have an impeccable service record that we’d love to refer you to.
If you have any other questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.