Buying a new home is a huge financial commitment. Many buyers have to stick to a tight budget in order to afford a new home, so they can be caught off guard when they are hit with a bill that they weren’t expecting. What should you expect to spend if you are buying a new home? Here are some of the hidden costs of buying homes for sale in Littleton CO:
Even the most meticulous planner may forget about the cost of moving into a new home. Besides buying moving supplies such as packing blankets, boxes, and tape, you may also need to hire movers, rent a moving truck, or ship items if you’re moving from a different city or state. How much will you have to pay to move? According to the American Moving & Storage Association, the average cost to move within the same state is around $1,200, but moving to a different state will set you back over $5,500. Learn more about the hidden costs of moving
Many lenders require that you pay for a survey of the property before closing. A survey is an official document that shows the property’s boundaries so you can protect yourself from boundary disputes in the future. You will have to hire a professional to perform the survey, which should cost a few hundred dollars.
Home Inspector Fee
Lenders will also require that you hire a home inspector to take a closer look at your home. The inspector’s job is to find any issues that may present a problem in the future, including structural damage, mold, or a leaking roof. You will be responsible for paying for the home inspector to perform the inspection, which usually costs between $200 and $600.
Before issuing a loan, your lender will also ask you to get the home appraised. Why? Lenders do not want to give you a loan for $500,000 if the home is only worth $300,000, because if you can’t make the payments in the future, the bank will not be able to recover all of their money by selling the home. It makes sense—but unfortunately, it will set you back a few more hundred dollars.
Buyers will have to pay the majority of closing costs, which can include credit report fees, tax service fees, lender’s origination fees, recording charges, and title insurance fees, among others. It can be difficult to plan ahead for closing costs because the amount will vary depending on a number of factors. But, closing costs tend to fall between 2-5% of the home’s purchase price, so keep this in mind when you are making your budget.
Be sure to plan for these hidden costs so you’re not caught off guard before closing on your new home. If you have any questions, our agents can guide you through every step of the buying process. Contact us
to talk to the experienced real estate agents at Colorado Home Sales today.