When it comes to buying a new home, it’s usually best that there are no surprises along the way. To better figure out your financial plan for buying your home, take into consideration other costs that might be included during the process. This Go BankingRates article by Natalie Campisi, can help prepare you for any additional costs that might come along during the home-buying process!
Home Inspection: $300 to $500
A home inspection is a vital part in determining the condition of the house; with an inspection you’ll find out whether the home meets state requirements and get a better idea of how much you’re willing to offer. Buyers should ask to see a list of items covered in the house inspection costs before it takes place. This allows time to request any additional areas the home buyers would like inspected.
Home Appraisal: $300
Unless you’re paying cash, almost all lenders will require home appraisals. A home appraisal is an educated guess on what the prospective property is worth, which gives the lender an idea of the collateral value. Usually the seller pays for the home appraisal. In the event the buyer agrees to cover the cost, expect to pay around $300.
Flood Determination: $20
Lenders will require proof of whether or not the property is located in a special flood hazard area. If the property is determined to be in a flood hazard area, then the lender is required by law to require flood insurance on the property.
Survey: $335 to $650
The survey fee is paid to a professional surveyor who verifies property boundaries. Boundary verification is important as any additions to the home — including fences, driveways, sidewalks or garages that infringe on a neighbor’s property — can be removed without warning. This kind of information can save you a lot of money down the road.
Homeowners Insurance: $300 or More
Homeowners insurance policies can vary dramatically depending on the type of coverage you choose. But basic coverage will cover property and liability due to things like smoke, theft, falling objects, explosions and fire or lighting. Most homeowners insurance won’t include damage that results from natural disasters like hurricanes or flooding. However, it’s possible to add that optional coverage to your policy. Your first year’s insurance is often paid at closing.
Moving Costs: $700
Packing up an entire household and moving it over to a different location can be expensive. On average, Americans paid about $707 in moving costs, according to HomeAdvisor.com. The price goes up — or down — depending on how much or how little help you require. For people who want full-service movers, the price spikes upward of $1,000, whereas others can get away with spending just a couple hundred bucks.
[Read the full article here]
