Other costs associated when buying a home

Article Submitted By – Jerry Armen

You thought you would save up your money and buy you a house, didn’t you? Well, think again! The price you found on the Internet does not include all the hidden fees, and there are plenty of them.

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Among the extra charges you will run into are mortgage insurance, when you put less than 20% down, and an appraisal fee, the amount varying on the size and complexity. Then there are the land survey, to determine the property boundaries and a deposit on the formal offer to purchase. You should count in the insurance that the lender will require you to carry from day one when you take ownership and the title insurance that guards against any troubles that might arise due to the title. Most lenders also pass on the application fee to the buyer. As if these weren’t enough, you’ve got the home inspection fee and legal fees. Additionally, you can calculate land transfer tax and goods and services tax (on new homes only). GST tax is lower on cheaper homes, even if they are new.

Don’t forget such practical costs as moving expenses, service hook-ups for utilities, property tax, and ongoing maintenance. You can easily see how buying a home is much more than the final, agreed upon price or the calculate cost of the mortgage. When you consider all these additional expenses, you begin to see how owning a home really is a great responsibility and it gives you respect for any homeowner.