Posted on: 29 February 2016
Just like many other things you buy, there are certain costs associated with buying a house. Take the case of a car for instance. After paying the purchase price at your local dealer's shop, you are also expected to pay a registration fee for the identity of your car. Such fees are just part of the associated costs that comes with owning a car. Similarly, there are some extra bills you will have to foot before you can comfortably say that you have bought a house and that it belongs to you. Therefore, it is important for you to stay abreast of these additional charges. This is because they will distort your plans, especially when you are not prepared and do not have money to pay. You can avoid such incidences by being aware of the following additional house purchase costs:
Home Inspection Fee
There are two objectives for carrying out an inspection on a house being sold. First, the inspection aims at protecting the buyer from any harmful underlying issues that can affect them during their stay. Secondly, it is also carried out to ensure that the seller makes the necessary corrections to the house before selling it. A good example of such corrections is the removal of asbestos, which can affect the health of the buyer when they are exposed to it for many years.
Such inspections are carried out by an authorised government or private institution, and they often require you to pay an inspection fee.
The Application Fee for the Mortgage
A mortgage is one of the most popular ways of buying a house. If you do not have all the money to pay for the house through cash or a banker's cheque, financial institutions like banks give you the money to buy the house on condition that they have a charge on it. This means that the house technically belongs to them until you repay all the money within a certain number of years.
When applying for a mortgage, the lenders charge a mortgage application fee, which is also referred to as the mortgage arrangement. This is the money used to process the mortgage, and it may be used for purposes such as accessing information from credit supervisory bodies to ensure that you qualify for a mortgage. It varies depending on the amount of money you are applying for.
The closing costs
Closing costs mark the final stages of acquiring the house you have just bought. They include the fees levied to process land transfers, titles, and deeds that recognise you as the legal owner of the property. Moreover, you will also incur legal fees at this point. It is levied for certifying the contracts signed during the purchase of the property.
For more information, talk with your property sales manager or real estate agent.Share