Unspoken of Costs Apart from Closing Costs, When Buying Real Estate

We know all about closing costs but there are other expenses to consider when purchasing a property. These additional expenses are; 1) Inspection Fees, 2) Appraisal Fees, 3) Application fees, 4) Credit Report fees, 5) Loan origination Fees, 6) Underwriting fees, 7) Private Mortgage Insurance fees, and 8) Mortgage Points. These fees can vary depending on your situation, location, and lender.

Inspection Fees: Not all states or lenders require buyers to get a home inspection. If it’s not a requirement but something you feel you need to get than the cost is your responsibility. Usually if its a requirement of the lenders they will manage the charge accordingly.

Appraisal Fees: The ultimate goal with a home appraisal is to determine the value of the home. Most lenders require this to be sure that the asking price is inline and that it is a sound investment.

Credit Report Fees: This fee is paid to the credit reporting agency. This is a report of all your financial records and provided to you and the lender.

Loan Origination fees: Your lender will charge you this to cover any additional costs that may arise while processing your loan application.

Underwriting fees: Underwriters dive deep into your financial and credit background to confirm your loan eligibility. This process will ultimately approve or deny your loan application. It can already be included in your loan origination fees-ask your lender for an itemization of fees.

Private Mortgage Insurance (PMI): Is an insurance payment that is privately provided by the lender, to secure the loan. Depending on your lender this can be avoided by providing a 20% or greater down payment.

Mortgage Points: Each mortgage point equals 1% of your mortgage amount. Some lenders give you the option to buy down your mortgage percentage rate, by buying points for a fee. The initial payment may be more but your lowering your interest rate, which will save you money in the long run.

_{We are not financial advisors. We are professionals in the real estate field and share our experiences with others.}