Buyer Fees to Be Aware of When Purchasing a Home

When buying a home, there are several fees that you should be aware of in addition to the purchase price of the home. These fees can vary depending on the location, type of property, and other factors, but here are some of the main fees to keep in mind:

1. Down payment: This is the amount of money you pay upfront when purchasing the home. It is usually a percentage of the purchase price, and the amount can vary depending on your lender and type of mortgage.  The range is from 1% – 20%, sometimes more if it’s an investment property.
2. Closing costs: These are fees associated with the purchase of the home, including fees for title search and insurance, property appraisal, loan origination, and other administrative costs. Closing costs typically range from 2-5% of the purchase price of the home.
3. Home inspection fee: This fee covers the cost of a professional home inspection, which is a necessary step in the home-buying process to identify any potential issues with the property.  Range is $375 – $650 depending on the age, size of house, and what you get inspected.  Sometimes it can be more.
4. Appraisal fee: This fee covers the cost of an appraisal, which is necessary to determine the value of the home and is often required by lenders.  Depending on demand and location, this can vary.  Most often $650 – $1200 is the range.
5. Property taxes: Depending on where the home is located, you may need to pay property taxes, which are usually based on the assessed value of the property.
6. Homeowner’s insurance: This is an insurance policy that protects you in case of damage or loss to the property. The cost of this insurance can vary depending on the location and type of property.
7. Homeowner association fees: If the property is part of a homeowner association (HOA), you may be required to pay fees to cover maintenance and other costs associated with the community.

It’s important to factor in these fees when budgeting for the purchase of a home to ensure you have a clear understanding of the overall cost.  If you have questions about the fees or need help finding your next home, get in touch with me.