HIDDEN FEES TO BE AWARE OF WHEN PURCHASING A HOME

After you've set aside your down payment and closing costs note the following:

Purchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will be other costs associated with your purchase then the price of the home. Here are 5 fees to keep in mind as you begin to budget.

1. Home inspection. This is a crucial step in the home buying process. The findings that come from the inspection can help you negotiate price and repairs. Although not mandatory, it is highly recommended on either resale and new construction purchases. Generally, you can expect to pay between $400 plus depending on the home, age, square footage and desired services.

2. Title services. Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure to no one will pop up with a claim to the property. Additionally, you may need to buy title insurance which will protect the lender or your investment in the home.

3. Appraisal fee. Before getting a loan, you will likely be required to get an appraisal of the home to determine its estimated value. This will be conducted by a third-party company and the cost can land anywhere between $300 and $1,000, depending on the size of the home.

4. HOA fees. Many communities have a homeowners’ association . This money is used for general maintenance and updates to areas like pools, parks, amenities and more. The HOA establishes guidelines for home upkeep.

5. Taxes. In Texas, the taxes each buyer pays at the closing table are prorated. Texas does not impose a State Income tax however property and sometimes MUD Taxes are applicable.

Sharon Arceneaux,
REALTOR ®, CLHMS
Keller Williams Memorial
713.534.3161
SharonArceneaux.com