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The Hidden Cost of Buyer’s Fees

If you are planning to buy your first home or you are working on financing a home, you need to know about the hidden cost of buyer’s fees. This is a part of the cost that can be rolled into your loan that might add up to a higher mortgage payment than you were expecting. Trademark Home Buyers Take the mystery out of these fees.

Appraisal Fees

To finance a home, you have to get an appraisal done on the property and the house itself. This can be quite expensive in some locations, so you need to be aware that this cost will be rolled into your loan. This might not be a big cost in your area, but you will have to pay for an appraisal either way when you finance a home.

Inspection Fees

Home inspection fees can be expensive but if you are buying an older home, they are well worth it. Even in the case that you are buying a newer home, you should pay for hits necessary assessment process to make you aware of any defects in the home that need to be repaired before you take possession of the property.

Picking a Mortgage You Can Afford

You should always make sure that you think about how much you can afford to pay for a mortgage before you buy. Always assume that a mortgage will be more than you expect due to added fees and charges that might crop up during the purchase process. You should make sure that you are not ending up with a mortgage you cannot afford easily.

Escrow Account

Depending on your lender, you might be asked to set up an escrow account that is related to your home mortgage agreement. The amount of money that goes into this account varies but it is used by the lender to pay the premiums for home insurance and property taxes. You will almost always have to add this cost to your home loan considerations when thinking about budget.

Closing Costs

There will always be closing costs for your purchase process. You will find that you will spend about 2% to 5% of your home’s purchase price on these costs. This means that you will need to plan on adding this much in cost to your monthly payment for your mortgage. These charges are almost always rolled into your total loan amount.