| It is always an exciting time when you are buying | | | | by the buyer's lawyer and seller's lawyer to make |
| that first or next house. Getting back in the real | | | | sure the transaction goes smoothly. The lawyer |
| estate game can always be fun and stressful at | | | | will review the purchase contract, search on the |
| the same time. After figuring out all those | | | | title and manage any other details associated to |
| mortgage payment, and home price calculations, it | | | | the purchase. These fees generally run from $700 |
| is important to realize the costs to buying a house | | | | to $1000. |
| don't stop there. | | | | 4) Home Inspection: A home inspection is a report |
| Aside from the actual purchase of the home you | | | | by an independent expert of the condition of the |
| have to be aware of some of the additional costs | | | | home. The report will list any defects or concerns |
| your going to have to dish out before you even | | | | that may arise from the inspection of the house. |
| open the door to that new home. Here are just a | | | | A typical home inspection may cost anywhere |
| few of examples of those costs. | | | | between $200 - $300 dollars and this varies |
| 1) Deposit: Deposits are made by the buyer of a | | | | generally due to the size of the house or the cost |
| property to the seller to show a serious interest | | | | of the home. |
| in completing the purchase of the home and are | | | | 5) Property Insurance: Property insurance is |
| paid when you make an offer to purchase the | | | | required on the date that the property transfers |
| property. The deposit is generally anywhere | | | | from the seller to the buyer. Property insurance |
| between 1 and 5% of the total purchase price of | | | | covers the replacement value of the house and all |
| the house. | | | | it's contents. The mortgage lender requires this |
| 2) Down Payment: Down payments are the | | | | because the house is what is being used to |
| amount owed to the seller after all deposits and | | | | secure the mortgage hence the replacement of |
| financing have been taken into consideration. For | | | | the house must be covered. |
| example on a $100,000 house that has a | | | | These are just a few expenses that you must |
| mortgage of $75,000, $25,000 is still owed by the | | | | consider before buying a house. It is important to |
| buyer. After an initial deposit of $5,000, the buyer | | | | consider these costs prior to the actual purchase |
| must pay a $20,000 down payment. | | | | of that next house, so you are financially |
| 3) Legal Fees: Real estate purchases are reviewed | | | | prepared to cover these extra items. |