Insider Baltimore Real Estate Secrets Revealed!
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Welcome to this week’s edition of Insider Real Estate Secrets Revealed! (Educational Course for Home Buyers and Sellers)
We hope you have learned a tremendous amount from our articles and we look forward to providing more educational material to help you on your home buying or selling journey. In this edition of Insider Real Estate Secrets Revealed, we are focusing on 9 ‘Hidden Costs’ that most Home Buyers don’t know about. We’ll discuss what YOU can do to avoid falling prey to these traps. So, sit back, relax, and enjoy this edition.
How to Recognize 9 Hidden Costs Most Buyers Don’t Know Even Know About
Get ready to learn about the miscellaneous expenditures you’ll encounter during the home buying process. This report will uncover the 9 most overlooked costs home buyers miss. Sit back, relax and get ready to become informed!
1.) Taxes, Taxes, Taxes
Think April 15th is the only day of the year you need to worry about taxes? Wrong. Taxes are an intregal part of homeownership. Property taxes from the state, county and local tax authorities will be assessed from you as a homeowner. Most lenders will create what is called an ‘escrow’ account. This account will have money added to it each month that is taken from your monthly mortgage payment. This money is then used by the lender to pay your property taxes and other items, like insurance on a schedule. Make sure you ask the lender what your PITI will be, not just your mortgage dues. This total monthly payment (PITI) figures in your mortgage payment and tax and insurance fees. Land transfer taxes are also a consideration. In some cases, this tax is assessed when property changes hands.
2.) Appraisal Fees
Your mortgage lender will most likely request that an appraisal be performed on the home you are purchasing before they agree to lend you the money. The reason – the lender must make certain that the property is actually worth what the seller is claiming. This protects the lender, keeping them from lending money that is not secured by real property. Appraisals vary in price and can range from $150-$450.
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3.) Misc. Origination and Loan Fees
When a mortgage company approves your loan, they are just getting started. The process of finalizing your loan requires a number of intricate steps, including processing / document preparation, underwriting, closing and funding. Because of this, lenders often charge additional fees. Be prepared to pay processing and closing fees, in addition to origination fees and document preparation fees. Of course fees can vary from lender to lender and it pays to shop around.
TIP- Reputable lenders will guarantee their prices. We offer a ‘Lowest Bottom-Line Cost Guarantee’. For more details, visit our website (the link is listed below).
4.) Association and Maintenance Fees
Does the neighborhood you’re moving into have a neighborhood association? If it does, you need to watch out for association dues. Some upscale neighborhoods will actually require that you join the association, so these costs need to be factored in ahead of time.
If you are purchasing a condominium, beware of maintenance fees, which help pay for grounds-keeping, carpet cleaning and periodic renovation.
5.) Survey Fees
Lenders sometimes will request an updated property survey before they will agree to close and fund your loan. Survey fees can vary from $600-$1000.
6.) Utility Service Fees
Moving into a new home will require that you set up utility service in many cases. Cable, phone, electricity, gas and water companies will require an installation fee or ‘hook-up’ fee to get you started. Be ready to pay fees ranging from $10-$50 for each one of these utilities.
7.) Mortgage Insurance and Homeowners Insurance
Don’t get mortgage insurance and homeowners insurance mixed up, as they are very different. Mortgage insurance is required in cases where the down payment is smaller than the lender’s requirement. In these cases, you will pay between 0.5% and 4% extra to ‘insure’ the mortgage. These fees are usually rolled into the PITI (total monthly payment).
TIP – After you have paid down your mortgage loan a bit, the equity in your new home will increase. When the equity hits a certain percentage, in many cases, the mortgage insurance is no longer required and can be removed from your monthly payment. Ask your lender for details.
8.) Moving Costs
Unless you decide to ‘do-it-yourself’, you will be forced to hire a professional mover. Movers can charge anywhere from $50-$100 per hour, so it pays to shop around. Because of the many unscrupulous moving companies in business today, we highly recommend you do the following before hiring a mover:
- Call the local Better Business Bureau and ask for a report on the moving company you have picked – Call the state’s Attorney General’s office and ask if any reports were filed against the company in question
9.) Water Quality Certification
If you purchased a home that draws its water from a well, we advise that you have the water tested and certified. Chemicals and bacteria can seep into a well over time. So be safe and have the well tested. Fees for well certification can vary by location.
We hope this NO-COST report has shown you just how committed we are to helping you become an informed and educated home buyer. But we’re not done yet.
Darren Meade is a local and national Real Estate Finance Expert. He has created two FREE educational websites for home buyers and sellers. http://www.freerealestatesecretssoutherncalifornia.com http://www.freemortgageinformationsoutherncalifornia.com http://darrenmeade.zaadz.com
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