Dream Lands Design
  • Home Improvement
    • DIY
    • Remodeling
    • Woodworking
    • Accessories
    • Home Design
      • Furniture
      • Organize
      • Tips
      • Decor
        • Interior
        • Exterior
  • Design Ideas
    • Bathroom
    • Bedroom
    • Dining Room
    • Living Room
    • Kitchen
  • Gardening
    • Backyard
    • Front Yard
    • Landscaping
  • Home Improvement
    • DIY
    • Remodeling
    • Woodworking
    • Accessories
    • Home Design
      • Furniture
      • Organize
      • Tips
      • Decor
        • Interior
        • Exterior
  • Design Ideas
    • Bathroom
    • Bedroom
    • Dining Room
    • Living Room
    • Kitchen
  • Gardening
    • Backyard
    • Front Yard
    • Landscaping

Categories

  • Accessories
  • Backyard
  • Bathroom
  • Beauty
  • Bedroom
  • Cars
  • Decor
  • Design Ideas
  • Dining Room
  • DIY
  • Entertaining
  • Exterior
  • Finance
  • Front Yard
  • Furniture
  • Gardening
  • Green Living
  • Home Design
  • Home Improvement
  • Interior
  • Kitchen
  • Landscaping
  • Lifestyle
  • Living
  • Living Room
  • Organize
  • Photography
  • Real Estate
  • Remodeling
  • Tips
  • Uncategorized
  • Wall Improvement
  • Woodworking

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • Privacy Policy
  • Terms of Use
  • Disclosure
  • Sitemap
  • Contact Us
29K
98K
0
Dream Lands Design
  • Home Improvement
    • DIY
    • Remodeling
    • Woodworking
    • Accessories
    • Home Design
      • Furniture
      • Organize
      • Tips
      • Decor
        • Interior
        • Exterior
  • Design Ideas
    • Bathroom
    • Bedroom
    • Dining Room
    • Living Room
    • Kitchen
  • Gardening
    • Backyard
    • Front Yard
    • Landscaping
featured image - What's the Real Cost of Buying a Home?
You're here: Home Home Improvement What’s the Real Cost of Buying a Home?

What’s the Real Cost of Buying a Home?

  • Perla Irish
  • April 27, 2022
Total
2
Shares
0
0
2
0
0
Table of Contents Hide
  1. Expected Costs of Buying a Home
    1. 1. Down Payment
    2. 2. Month-to-Month Mortgage Payment
    3. 3. Appraisal Fee
    4. 4. Home Inspection Fee
    5. 5. Deposit Fee
    6. 6. Title Insurance
    7. 7. Legal Fees
    8. 8. Credit Report
    9. 9. Utilities and Property Taxes
    10. 10. Home Insurance
    11. 11. Moving Cost
  2. Conclusion

On a surface level, buying a home is a huge investment and like all investments, there are certain questions you may need to ask yourself.

Do you intend to go for a new home or an old one? What is the cost of going for a new home? The maintenance cost and many more. These are some factors most home buyers consider before making that life-changing decision.

Not to worry, this article has compiled a wealth of information on the real cost of buying a home and everything you need to know. Let’s get started!

image - What's the Real Cost of Buying a Home?
What’s the Real Cost of Buying a Home?

Expected Costs of Buying a Home

There are certain costs you may need to know and except when you want to buy a home. Below are some of these costs:

1. Down Payment

Down payment is an initial payment made before the purchase of the property. Most down payment is an advanced price concerned with most mortgage loans.

However, down payments are within the range of 20% of the total price of the home. Therefore, when next you think of buying a home, determine how much money you can put down before the actual purchase.

2. Month-to-Month Mortgage Payment

Your month-to-month mortgage payment is another cost you may need to consider before buying a home. It is subdivided into three:

  • Principal: This is a portion of your mortgage payment that goes to reduce the balance of your loan monthly.
  • Interest: This is a rate charged on the loan by the lender. Your principal and interest are amortized to be paid off over the loan term.
  • Property Taxes: There can also be called real estate taxes. These are taxes charged by your country’s taxing authority and can fluctuate depending on changes in the value of your property.

3. Appraisal Fee

This is the amount of loan you will receive from your lender depending on the appraised market value of your home.

Appraisals are used in sale-and-purchase transactions to determine whether the home’s selling price is appropriate considering its features and condition.

This includes an inspection of the properties and a comparison of recent sales in similar real estate within the locality. The average price for an appraisal varies from $300-$400 depending on the type of home you plan to purchase as well as the location.


Read Also:

  • 7 Common Mistakes When Buying Homes and How to Avoid Them
  • Buying a Home As-Is: 10 Warning Signs You Can’t Afford to Ignore
  • Buying House in Another Country: Translation of Documents
  • How Much Cash You Need Closing on a Home?

4. Home Inspection Fee

When you’re buying a home, it’s always a wise idea to get a home inspection. During an inspection, someone goes through the home to see if there are problems with the electrical, air conditioning, heating, plumbing, floors, ceiling, walls, and other parts of the home to ensure that everything is functional.

The cost of a home inspection might range from $300-$1000 depending on the size of the home and what is involved in the inspection.

5. Deposit Fee

Once your offer has been accepted by a seller, you’re required to pay a deposit of some percentage of the purchase price depending on the location.

image - Deposit Fee

This tells the seller that you’re serious about the offer and would want to see it through. If for any reason the offer doesn’t go through, the seller keeps the deposit as compensation for taking the time to go through the process with you.

Note: The deposit fee is not the same as down payments.

6. Title Insurance

This is a form of insurance that protects mortgage sellers and homebuyers against financial loss with a title that may arise as a result of the transfer of ownership of property.

This insurance also protects you from heirs/relatives of the previous owner who may try to have a claim on the property.

When you purchase title insurance, you pay someone to conduct public research to know if there is a third party besides the seller that has a claim to the property.

7. Legal Fees

These are fees paid to a real estate lawyer to review all the legal documents and paperwork such as the agreement of purchase and mortgage payments. The lawyer also ensures there are no claims on the property.

8. Credit Report

When you apply for a loan, your lender requests your credit report to see your track record of repaying loans in the past as well as your debt-to-income ratio. The cost of pulling your credit report is less than $30 and it’s added to your loan costs.

9. Utilities and Property Taxes

In some cases, the previous owner of the home might have paid the utilities or property taxes in advance. When your offer is accepted, you pay a fee called adjustments.

This is to ensure that the previous owner only paid for the duration they owned the property.

10. Home Insurance

This is a form of insurance policy that covers loss or damage against your home, furnishings, and other assets in the home. This insurance provides indemnity against accidents like fire outbreaks and natural disasters in your home.

When applying for a loan, you’re expected to provide a homeowner’s insurance policy before the loan is granted.

The cost of a home insurance policy can vary depending on the amount of insurance, coverage, and location.

11. Moving Cost

This is the cost incurred for moving your properties to your home and it can vary depending on the services of the moving company.

You can rent a truck, pack your boxes, personally load them into the truck and drive or you could hire a moving company to assist which will cost more depending on the types of properties you’re moving, the time of the year, the distance of your action and moving services you require.

Conclusion

Buying a home can sometimes be a  tasking activity however this article has simplified the process for you. All you need to know is the real costs of getting one to avoid surprises when you’re about to close that deal.

Now you know about the ins and outs of the transaction by maximizing the resources made available to you in this article, it would be a great experience for you and your family to make that dream home a  reality.

Total
2
Shares
Share 0
Tweet 0
Pin it 2
Share 0
Share 0
Related Topics
  • buying
  • Cost
  • home
  • insurance
  • loan
  • Mortgage
  • payment
  • price
  • property

Subscribe

Subscribe now to our newsletter

You May Also Like
featured image - How to Choose the Perfect Flooring for Your Business Tips from Our Company
View Post

How to Choose the Perfect Flooring for Your Business: Tips from Our Company

  • March 18, 2023
featured image - What Should You Know About Silicone Rubber Compounds?
View Post

What Should You Know About Silicone Rubber Compounds?

  • March 18, 2023
featured image - Storage Units Sizes, Uses & Pricing
View Post

Storage Units: Sizes, Uses & Pricing

  • March 18, 2023
featured image - Common Sofa Fabrics
View Post

Common Sofa Fabrics

  • March 16, 2023
featured image - A Comprehensive Guide on Insurance for Consultants
View Post

A Comprehensive Guide on Insurance for Consultants

  • March 15, 2023
Featured image - Flat Roof Repair: All You Need to Know
View Post

Flat Roof Repair: All You Need to Know

  • March 14, 2023
Featured image - Maximize Your Comfort with Big Pillows for Every Sleeping Position
View Post

Maximize Your Comfort with Big Pillows for Every Sleeping Position

  • March 14, 2023
featured image - Understanding Your Lease Agreement 5 Key Responsibilities as a Renter
View Post

Understanding Your Lease Agreement: 5 Key Responsibilities as a Renter

  • March 14, 2023
Dream Lands Design
  • Privacy Policy
  • Terms of Use
  • Disclosure
  • Sitemap
  • Contact Us

Input your search keywords and press Enter.

Add Dream Lands Design to your Homescreen!

Add