3 'Hidden' Costs You'll Uncover Buying Your First Home
Are you about to become a first-time home buyer? If so, there's a lot to get excited about. You'll soon be a homeowner, able to customize and improve your living space as you see fit.
Of course, buying a home is an investment unlike any other. To get the best deal on your home, you'll need to be diligent. Let's have a look at some of the hidden costs you may uncover when buying your first home.
#1: The Home Inspection (And What It Finds)
A major step before buying any home is the inspection. A licensed inspector will go over the home from top to bottom, looking for current or future issues. The inspection itself isn't very costly. But any unresolved issues that come up may lead to expensive problems later.
If possible, try to ensure that the seller pays for any necessary repairs. When you take possession of the home, it should be in top condition.
#2: Taxes And Fees You've Never Even Heard Of
You already know about the major taxes, such as sales taxes that apply to a home's sale price. Or property taxes, charged by local governments each year and based on your home's assessed value. But depending on where you live, there may be a whole host of other taxes and fees involved. Many of which you've never even heard of!
For example, you may be subject to a Land Transfer Tax or Property Purchase Tax. These are taxes charged when a property changes hands. If you're taking out a mortgage loan, the lender may require you to pay land survey or appraisal fees. These costs help the lender to ensure the risk involved with the mortgage is appropriate.
#3: Insurance, Insurance And More Insurance
Finally, don't forget the cost of insurance. On top of regular home insurance, you may need mortgage insurance, title insurance, extra life insurance and more. It's worth booking some time with an insurance professional to find out what kind of coverage you will need.
These are three of the possible costs involved in closing the purchase of a new home. For more information about closing costs and new homes in your neighborhood, contact your local real estate agent. These professionals have the data and insight to help you make the best decision.