January 28, 2023

Whether you’re looking to buy your first home or trading up to a larger one, there are a number of costs on top of the purchase price that figure into your calculation of home affordability.

It is important for you to know what some of these extra fees could be, so as not to be surprised on closing day.

Some costs are one-time fixed payments while others represent an ongoing monthly or yearly commitment.

Number one is the appraisal fee. Your lending institution may request an appraisal of the property, which would be your responsibility to pay for.

Number two is property tax. 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 included in your monthly mortgage payments, your lending institution may require annual proof that the taxes have been paid.

Number three is the survey fee. If the purchase is a resale home, your lending institution may ask for an updated property survey.

Number four is property insurance. Home insurance covers the replacement value of your home, the structure, and its contents. The lending institution will request proof that you are insured as it protects their investment on the loan.

Number five is service charges. Any new utility that services your home, such as telephone or cable may require an installation fee.

Number six is legal fees. You may have a lawyer helping you when you purchase a home. Even for simple transactions, shop around as rates vary greatly, depending on the complexity of the issues and the experience of the lawyer.

Number seven is mortgage loan insurance. Depending on the equity in your home. Some mortgages require a mortgage loan. Insurance payments are usually made monthly.

Number eight is the mortgage broker’s fee. A mortgage broker may charge a fee in order to source a lender and organize the financing. It does pay to shop around as many mortgage brokers will provide their services for free. By having the lending institution absorb the cost, speak to the realtor who gave you this video. They may be able to arrange special financing through one of their mortgage specialists.

Number nine, moving costs. The rate usually rises from 10% to 20% during peak demand seasons.

Number 10, maintenance fees. Condominiums charge monthly fees for common area maintenance. Costs will vary depending on the building.

Number 11, water quality and quality certification. If the home you are looking to purchase is serviced by a well, you should consider having the water checked by local experts. A fee may be charged for this service.

Number 12, local improvement. If the town you live in or will be moving to has made local improvements such as the addition of services and sidewalks, property taxes could be impacted.

Number 13, land transfer tax. This tax is applied whenever property changes hands, the amount applied can vary.

Your realtor can give you more detailed information on these and other costs, which may be associated with the home-buying process.

Arming yourself with the right information will ensure that you’re budgeting properly and making all the right moves before purchasing your new house.

About the author 

Rick Kendrick

Rick Kendrick, a Palm Beach Realtor, is the proud owner of Your Home Sold Guaranteed Realty of Florida. With an exceptional track record, Rick has earned the distinction of being an award-winning real estate agent, placing him among the top one percent of agents in the industry. Headquartered in North Palm Beach, Florida, Rick leads his own Real Estate Team, covering the Southeastern region of Florida, while also maintaining a vast network of agents throughout North America.

Rick's outstanding achievements have not only impressed his clients but have also captured the attention and admiration of prominent media outlets and celebrities alike. Renowned platforms such as Fox, CBS, NBC, and ABC have featured Rick, showcasing his expertise to audiences far and wide. His real estate acumen and remarkable success stories have also been shared on popular radio stations, including 850 WFTL News Talk and Sunny 107.9 FM. Listeners are captivated by Rick's wealth of knowledge and his unwavering passion for the industry.

In addition to his accomplishments as a real estate agent, Rick Kendrick is also the charismatic host of a captivating Real Estate Talk Show. Every week, Rick invites esteemed guest co-hosts to join him, creating a dynamic and insightful experience for his audience. With his extensive knowledge and expertise, Rick engages in thought-provoking discussions with his guests, sharing valuable insights, trends, and tips related to the real estate market. The talk show serves as an educational platform, not only for viewers seeking knowledge but also as a stage for industry professionals to share their experiences and expertise. Anyone interested in the world of real estate would find Rick's talk show to be a must-watch, as it offers a unique opportunity to learn and stay informed.

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