Additional Costs to Consider Before Buying a New Home

When calculating the cost of buying a new home, many people forget to include some of the miscellaneous fees, taxes and insurance costs associated with owning property. All of these additional costs can definitely add up, and put what you thought was an affordable home out of your financial reach on closing day. Some of these costs are one-time expenditures that can be included in the closing costs, or even in the mortgage payments, but others, such as property taxes and homeowners association fees, can wind up as monthly or annual expenses for which you need to budget appropriately.
Here’s a list of 13 additional costs you may incur when you buy a new home. Budgeting in advance will help you turn what might be a financial nightmare into a smooth transition as you move into your dream home.

1.Appraisal fees.
The lending institution handling your mortgage may require an appraisal on the property before they proceed with the loan.The buyer is responsible for this cost, which may run between $175 and $300.

2.Property taxes.
Your lending institution may opt to include the cost of your property taxes into your mortgage payment, depending upon the size of your down payment or other factors. If they choose not to do that, you will be responsible for the annual or bi-annual payments yourself, and you may need to provide annual proof to your lending institution that these taxes have been paid.
3.Survey fees.
Your lending institution may require an updated property survey if you are not the first owner or original owner
of the property. Surveys can be moderately expensive, ranging from $700 to $1000.
4.Property insurance.
Your lender will require proof that you are carrying a homeowners insurance policy on your new house that will
adequately cover the replacement value of your home, which is different from the purchasing price.
5.Service charges.
Most utilities, such as water, power and cable, may require additional deposits or installation fees for a change
of service.
6.Legal fees.
A lawyer with experience in real estate should always review all the paperwork for the purchase of a home
before closing. Rates can vary greatly according to the expertise of the lawyer, and the size and complexity of
the real estate transaction.
7.Mortgage broker fees.
Mortgage brokers can charge you a fee to secure your financing with an appropriate lending institution,
although many will try to get the lending institution to share or absorb these fees.

8.Mortgage loan insurance fees.
This type of insurance, which can cost from 0.5 to 3.5% of the total mortgage, can usually be worked into the
monthly mortgage and property tax payments.You may be able to avoid this type of insurance if the equity in
your house is great enough.

9.Moving costs.
The costs for a professional mover can be as much as $100 for a van and three movers.These prices can rise
significantly during peak seasons.

10.Maintenancefees.
Condominiums, townhouses, and single family homes in planned communities may also charge a monthly
homeowners association fee for the maintenance of common grounds, recreational areas, and other amenities.

11.Water quality certifications.
If the water supply for your new home is provided by a well, then you should have the quality checked by a lo-
cal expert.These fees may or may not be the responsibility of the new owner, depending upon where you live.

12.Local improvements.
Property taxes can be affected dramatically if large municipal improvements, such as the addition of sidewalks,
water treatment centers or sewage systems, have been made recently.

13.Land transfer taxes.
These taxes are generally assessed whenever a piece of property changes hands.The amount can vary greatly,
especially if the value of the land has increased substantially since the last change of ownership