Does Buying a Home Come with Extra Costs?
If you’re thinking of buying a home, you’re probably expecting to pay a bit of money. For many people, the most expensive thing they’ll ever purchase is a home.
And when you add up the costs of insurance, interest on your mortgage and more, it’s evident that homes cost quite a bit more than just the sale price. Buying property is a secure and life-changing investment. But even if your home loan is excellent, the price of entry can be quite the commitment.
If you’re financially savvy and you like to budget effectively, it pays to be aware of the extra costs associated with buying a home so you can be prepared.
Compared to the cost of dealing with a pest problem, inspections are relatively cheap. Having said that, you’re looking at roughly $400 or more for pest and building inspections.
Your legal team will often organise these inspections on your behalf. Even if the property looks absolutely pristine, it’s still the wiser choice to have it inspected.
Real estate agent fees
If you’re buying a new home to move into, chances are you have to sell your old one first. Real estate agent comparison services such as LocalAgentFinder can be helpful in finding a great local agent (or the least pricey, if that’s your priority).
But no agent works for free, nor should they. It might be worth paying more for a better agent who can get you a better price on your current home, but that’s up to you to figure out.
One thing is guaranteed: You’ll have to pay your agent, so be sure to factor their fees and commissions into your budget.
There are many different types of insurance that you’ll come to familiarise yourself with after purchasing your new home. Building insurance, contents insurance, mortgage protection insurance, lenders mortgage insurance, title insurance and more (just to name a few).
These charges will depend on the companies you choose to deal with and the packages you opt for.
Bank valuation fees
Getting an official valuation done will cost you. It depends on the bank (some banks even waive this), but be sure to investigate before finalising your budget.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.