Page 23 - The Latest Homebuying Guide

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Do you know your other financial obligations?

Here are the most popular expenses that are charged during a
home purchase. Not all of them are paid each time:
Application Fee: This includes the costs associated with processing
your application by the lender or their representative. Application
fees are usually non-refundable.

Appraisal: You pay an appraisal fee to a qualified appraiser to
ensure that your house is worth what the seller is asking. You
don’t want to pay more than market price for your house, and
your lender does not want to lend you more money than the
house is worth either.

Attorney Fee: Some states require that an attorney reviews the
documents to ensure legality. Some home buyers use attorneys
to ensure that they get the best contract terms.

Closing cost are the fees that you pay to companies and individuals
for services rendered during the purchase of your home. On an
average, these fees normally run between 4 and 6 percent of the
purchase price of the home.

Example:
Your home’s purchase price is $240,000.00. Expect to pay be-
tween $9,600 and $14,400 in closing costs.

Courier Fee: Most documents are sent and signed electronically
nowadays but circumstances may require the use of couriers to
transport documents.

Credit Report: Lenders want to ensure that you can pay back the
money they lend you. They can determine this when they pull
your credit report to see your history and scores, from all three
bureaus.

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