It is very typical for first time homebuyers to overlook the common fees and hidden costs of investing a house. This is one mistake they usually do when starting to get into the investment process because their attention is mostly focus on how they are going to get the budget for major fees such as the initial payment and the mortgage fees that they have to pay every month. As a result, they forget apportioning some of the funds for the common and hidden fees. One situation, a person wants to buy a Corpus Christi real estate so he or she looks at the prices of the properties from Corpus Christi homes for sale listings. The prices he or she finds for the properties will be his only standard when making the budget. But you have to take note that common fees and other hidden costs can sum up to thousands of dollars or at least five percent of the price of the property. To be able to have a good budget and financial management, it is necessary that you know all the underlying investment fees you will have to make-no matter how huge or minor they may be. If you can make a ballpark calculation of all the fees you are going to pay including all the major and minor fees, it would be very easy for you to know how much amount of money you would like to loan from a lending company. Aside from the major payments, below are some of the usual fees you will be making when you invest in a house.
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Loan Application Fee – Many of the prospective buyers who plan to invest in a house apply for a home loan because they do not really have enough savings to pay for the house in full. They turn to banks and other crediting companies that can provide them financial aid for the house. If you plan to get a housing loan, there will be application fees you will need to pay.
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Credit Report Fee – Yes, you are entitled to an annual credit report for free. However, there are moments that the lending institution will require you to pay for the credit report fee so they can look at your credit history and verify it.
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Appraisal Fee – Banks or the lending company needs to check that you are really applying for a loan that amounts to the approximate value of the house. This is why you need pay an appraisal to make an appropriate estimation of the cost of the house you want to buy.
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Home inspection fee – Another professional service that you should pay for is home inspection. The inspector is the one to make an intensive report containing information about the structural features and the current condition the house.
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Notary fee – You also have to be prepared for the paper works included in the process of real estate investing. In addition to this, you also need to pay for a notary to legalized all the important documents for the investment.
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Escrow fee – You would need to pay a third party that will take care of and handle the monetary matters during your last transaction for the sale of the house.
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Homeowner’s Insurance Fees – Your lender will also require you to pay for a homeowner’s insurance, meaning you have to take care of some more fees.
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Property Tax — The house should be filed for a property tax as well. If the seller had not paid it yet, you are required to handle it. However, sellers who had paid the tax already will get a reimbursement of their payment from you as the new owner.
