| Welcome to this week's edition of Insider Real Estate | | | | 4.) Association and Maintenance Fees |
| Secrets Revealed! (Educational Course for Home | | | | Does the neighborhood you're moving into have a |
| Buyers and Sellers) | | | | neighborhood association? If it does, you need to |
| We hope you have learned a tremendous amount | | | | watch out for association dues. Some upscale |
| from our articles and we look forward to providing | | | | neighborhoods will actually require that you join the |
| more educational material to help you on your home | | | | association, so these costs need to be factored in |
| buying or selling journey. In this edition of Insider Real | | | | ahead of time. |
| Estate Secrets Revealed, we are focusing on 9 | | | | If you are purchasing a condominium, beware of |
| 'Hidden Costs' that most Home Buyers don't know | | | | maintenance fees, which help pay for |
| about. We'll discuss what YOU can do to avoid falling | | | | grounds-keeping, carpet cleaning and periodic |
| prey to these traps. So, sit back, relax, and enjoy | | | | renovation. |
| this edition. | | | | 5.) Survey Fees |
| How to Recognize 9 Hidden Costs Most Buyers Don't | | | | Lenders sometimes will request an updated property |
| Know Even Know About | | | | survey before they will agree to close and fund your |
| Get ready to learn about the miscellaneous | | | | loan. Survey fees can vary from $600-$1000. |
| expenditures you'll encounter during the home buying | | | | 6.) Utility Service Fees |
| process. This report will uncover the 9 most | | | | Moving into a new home will require that you set up |
| overlooked costs home buyers miss. Sit back, relax | | | | utility service in many cases. Cable, phone, electricity, |
| and get ready to become informed! | | | | gas and water companies will require an installation |
| 1.) Taxes, Taxes, Taxes | | | | fee or 'hook-up' fee to get you started. Be ready to |
| Think April 15th is the only day of the year you need | | | | pay fees ranging from $10-$50 for each one of |
| to worry about taxes? Wrong. Taxes are an intregal | | | | these utilities. |
| part of homeownership. Property taxes from the | | | | 7.) Mortgage Insurance and Homeowners Insurance |
| state, county and local tax authorities will be | | | | Don't get mortgage insurance and homeowners |
| assessed from you as a homeowner. Most lenders | | | | insurance mixed up, as they are very different. |
| will create what is called an 'escrow' account. This | | | | Mortgage insurance is required in cases where the |
| account will have money added to it each month that | | | | down payment is smaller than the lender's |
| is taken from your monthly mortgage payment. This | | | | requirement. In these cases, you will pay between |
| money is then used by the lender to pay your | | | | 0.5% and 4% extra to 'insure' the mortgage. These |
| property taxes and other items, like insurance on a | | | | fees are usually rolled into the PITI (total monthly |
| schedule. Make sure you ask the lender what your | | | | payment). |
| PITI will be, not just your mortgage dues. This total | | | | TIP - After you have paid down your mortgage loan |
| monthly payment (PITI) figures in your mortgage | | | | a bit, the equity in your new home will increase. |
| payment and tax and insurance fees. Land transfer | | | | When the equity hits a certain percentage, in many |
| taxes are also a consideration. In some cases, this | | | | cases, the mortgage insurance is no longer required |
| tax is assessed when property changes hands. | | | | and can be removed from your monthly payment. |
| 2.) Appraisal Fees | | | | Ask your lender for details. |
| Your mortgage lender will most likely request that an | | | | 8.) Moving Costs |
| appraisal be performed on the home you are | | | | Unless you decide to 'do-it-yourself', you will be |
| purchasing before they agree to lend you the money. | | | | forced to hire a professional mover. Movers can |
| The reason - the lender must make certain that the | | | | charge anywhere from $50-$100 per hour, so it pays |
| property is actually worth what the seller is claiming. | | | | to shop around. Because of the many unscrupulous |
| This protects the lender, keeping them from lending | | | | moving companies in business today, we highly |
| money that is not secured by real property. | | | | recommend you do the following before hiring a |
| Appraisals vary in price and can range from | | | | mover: |
| $150-$450. | | | | - Call the local Better Business Bureau and ask for a |
| 3.) Misc. Origination and Loan Fees | | | | report on the moving company you have picked |
| When a mortgage company approves your loan, | | | | - Call the state's Attorney General's office and ask if |
| they are just getting started. The process of | | | | any reports were filed against the company in |
| finalizing your loan requires a number of intricate | | | | question |
| steps, including processing / document preparation, | | | | 9.) Water Quality Certification |
| underwriting, closing and funding. Because of this, | | | | If you purchased a home that draws its water from |
| lenders often charge additional fees. Be prepared to | | | | a well, we advise that you have the water tested |
| pay processing and closing fees, in addition to | | | | and certified. Chemicals and bacteria can seep into a |
| origination fees and document preparation fees. Of | | | | well over time. So be safe and have the well tested. |
| course fees can vary from lender to lender and it | | | | Fees for well certification can vary by location. |
| pays to shop around. | | | | We hope this NO-COST report has shown you just |
| TIP- Reputable lenders will guarantee their prices. We | | | | how committed we are to helping you become an |
| offer a 'Lowest Bottom-Line Cost Guarantee'. For | | | | informed and educated home buyer. But we're not |
| more details, visit our website (the link is listed | | | | done yet. |
| below). | | | | |