Home Buying Tip #5
Don’t Forget Closing Costs
By: Jerika P – i-Lead Realty Social Media Manager
The closing costs are one expense to be aware of when purchasing a property. There are several expenses to consider in addition to the home’s purchase price. The buyer frequently covers closing fees, but there are other fees you might be able to get the seller to cover. Here are the usual closing costs you should be aware of:
1. Lawyer’s fees
While it is recommended to engage a lawyer to draft the contract and help you negotiate, if your agent is a seasoned expert in the field, you may be able to avoid paying this fee.
2. Title insurance
When you purchase a property, title insurance protects you and the lender from any issues that could result in monetary loss.
3. Home appraisal fee
When purchasing a home with a mortgage, an appraiser will evaluate the property and determine its actual value by comparing it to comparable homes that share the same attributes.
4. Property survey fee
It is crucial to determine how much land the property actually occupies.
5. Pest inspection
To determine whether there are any “housemates” that you might want to expel before purchasing the property and deciding to settle there.
6. Local property taxes
It is an annual tax a homeowner should pay.
7. Homeowner insurance premium
Although there is no legal requirement that you purchase homeowner’s insurance, mortgage lenders require that you do so before they agree to finance your house.
We know preparing for all these costs can be intimidating, that’s why we always recommend finding a real estate professional. They will be able to ensure you know about all the fees and costs and how to pay them. If you are searching for a Real Estate Professional or would like to learn more, you can contact us here.
Are we in a housing bubble? Here’s what some of the most successful realtors in the country say. Watch the video here