Today’s blog on fees is a guest blog written by Mindy Witt with Assured Title Agency.
Fees to Consider When Buying a Home
As our economy strengthens, the first place we typically see it is in the housing industry. While we are slowly seeing the shift from a “buyer’s market” where home prices are low, to a “seller’s market”, right now both parties can come out winners. With mortgage rates still low, home buyers can get financed for less, and sellers can make a profit on their home with the limited inventory for sale currently. This blog discusses fees associated with the closing.
Like any first time home-buyer, I recently went to work to figure out what other costs and fees I need to be prepared for, besides the large print asking price on those glossy flyers showcasing all of the bells and whistles of the home.
Utility Fees
In the rent-crowd, utilities are generally included in my rent. Researching utility costs before purchase is easy to find out. A simple call to Xcel or the service provider for the area can reveal a high, low, and average for the year. This is helpful to know just how much more to expect to pay in February as opposed to April.
Home Owner Association Fees
When buying a home or condo, most will have homeowner association dues. It’s an important number to consider so you know how much besides utilities and your mortgage payment will still need to clear the bank each month.
Taxes
Property, city and county taxes are all additional expenses. These taxes, however, can be rolled into your mortgage payment, so you know what to expect.
Closing Costs
Work with your agent to learn what all is included in closing costs, both for your home and your mortgage. Closing costs can add up and include escrow of hazard insurance, HOA dues and taxes. Any loan origination fees or lender fees are also part of closing.
Title Insurance
The most important purchase you can make when buying a home is title insurance, which is a one-time paid fee depending upon the amount of sale of the home. The insurance will protect you in the event of future claims made on your ownership of the house, and any liens that are uncovered after closing. Title insurance can help you avoid foreclosure if an outside party makes a mistake while making the ownership transfer on your home. Not all title companies provide the same level of protection, so consider requesting the best company to protect your interests.
While this list covers the larger costs and fees associated with new-found home ownership, your trusty and knowledgeable agent can once again assist you in the right direction to make sure all costs are tallied.
About the guest author
This article was written by Mindy Witt. | AVP Marketing & Client Experience, Assured Title Agency, LLC | 1900 16th St, Ste 950, Denver, CO 80202; Office 720.542.6940 | Direct 720.542.6945 | mindyw@assuredtitleagency.com; A Higher Level of Service. | www.assuredtitleagency.com