When you are about to buy a house, it is easy to concentrate on the actual price of the property and forget about the closing costs involved. But if you are to budget for the purchase accurately, it is important to know all the fees involved in the entire process.
Here are four of the most common expenses you can expect when buying a property:
Given the magnitude of investing in a house, you should never go about it without the help of a reliable house buying solicitor. A solicitor provides the legal assistance you need so that you do not miss an important legal obligation that could haunt you after the purchase. In addition, they make sure your rights are protected throughout the process.
Private mortgage insurance fees
Sometimes, you are only able to provide a small down payment as you apply for a mortgage. In this case, buying private mortgage insurance may be the best way forward. Typically, you will need to pay a years’ worth of insurance at the time of purchase, or the amount could be added to your monthly payment.
Title insurance fees
You have probably done some research about the property in question to ensure that you are making a wise decision before shelling out your money. Still, it pays to take title insurance in case disputes about the ownership of the property arise after you have bought it. The insurance protects you and the lender against any losses when problems arise.
Before you buy a home, a professional should survey it to establish its price value. This information is necessary for tax purposes. The houses value is calculated based on the comparable price of the homes nearby. Prepare to pay this survey fee upfront.
It is advisable to understand beforehand what is expected of you so you can plan appropriately. Your ability to comply with these requirements, especially in paying all the fees required, can greatly ease the transaction process.