Whether you’re buying your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you must figure into your budget. These extra costs, could surprise you with an unwanted financial nightmare on closing day if you’re not prepared.
Read through the following checklist to make sure you’re budgeting properly for your next move.
1. Appraisal Fee - Your lending institution may request an appraisal of the property, which would be your responsibility to pay for. Appraisals can vary in price from approximately $175 -$ 300.
2. Property Taxes - Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If your property taxes are not added to your monthly payments, your lending institution may require annual proof that your taxes have been paid.
3. Survey Fee - When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $190 - $1,000.
4. Property Insurance - Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan. Beware! Some homes may not be insurable. Make sure you have an insurability clause in your purchase contract.
5. Service Charges - Any new utility that services your hook up, such as telephone or cable, may require an installation fee.
6. Escrow and Document Preparation Fees - Escrow fees are split between the buyer and the seller in Colorado. However, additional fees will be charged for the buyer’s mortgage closing. This can include first and second mortgages. In addition to the “Doc Prep” fees charged by the lender, some lenders will e mail the loan documents and therefore the escrow or title company may charge a electric to paper fee.
7. Mortgage Loan Insurance Fee - Depending upon the equity in your home, some mortgages require mortgage loan insurance. This type of insurance will cost you between 0.5% -3.5% of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.
8. Mortgage Brokers Fee - A mortgage broker is entitled to charge you a fee in order to source a lender and organize the financing. However, it pays to shop around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.
9. Moving Costs - The cost for a professional mover can cost you in the range of: $75-$200/hour for a van and 3 movers.
10. Maintenance or HOA Fees - Condos charge monthly Home Owners Association Fees for common area maintenance such as grounds keeping and carpet cleaning in hallways. Costs will vary depending on the building.
Gus Moore heads up Miami Beach 411 as site administrator. You can reach him at 1-305-754-2206.