Additional Cost Considerations for Home Buyers (Besides the Mortgage Payment)
When buying a new home in Mercer County, in addition to the mortgage payment, there are other cost considerations you have to know about. Some of these costs are recurring and not always obvious. However, if you don’t keep track of these additional costs, they might get too high to a point where they interfere with your planning. Here are some of the additional cost considerations you have to make as a home buyer:
Additional cost considerations
These additional cost considerations include closing costs, utility cost, appraisal, inspections, deferred student loans, association fees, downpayment, transfer owner fee, the cost of a realtor and earnest money deposit.
- Closing costs-Most of the times, in the sellers’ market, the seller may not pay the closing costs. In such a case the task will be left on you. As a buyer, you will have to pay all the closing costs. Usually, it is required of you to pay up to 4% of the costs.
- Inspections-Inspections on a home are the buyers’ responsibilities. This means the buyer has to pay for the inspections. Inspections are carried out to establish whether there are any molds or termites in the home. Inspections include that of the pool and every other part of the house.
- Appraisal-Usually, the seller asks you to pay for the real estate appraisal charges. You pay for it before it is ordered through the check or any other method of payment. This comes with a deadline too.
- Utility costs-In this case, it is wise for you to ask the utility provider in your county or city, such as Hightstown city, to allow you to budget on your planning bills and spread the payments over 12 months so that the payment doesn’t weigh you down.
- Transfer owner fee-Often, when you buy a home that has a homeowners’ association, you will be charged a fee to transfer to the new owner. This costs about $300.
- Earnest money deposit-This is the proof that you are serious about purchasing the home or property. Usually, the deposit is held in escrow until when you settle the full payment, also known as closing. If you don’t default your earnest deposit money, it is usually returned to you.
To determine your total expenses as the buyer or seller, you should know how much money you receive from selling your property and also how much money you will need to buy a home. Usually, there is a lawyer who helps you calculate the costs and provides you with information on the total amount of these fees. If you are a homebuyer in Pennington city, you should know that costs vary and you should not forget to consider and include in your budget some other small costs. These small costs are such as the home decorating costs, moving costs and upgrading costs.