{"id":17009,"date":"2018-06-07T08:03:51","date_gmt":"2018-06-07T08:03:51","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=17009"},"modified":"2018-06-07T08:04:15","modified_gmt":"2018-06-07T08:04:15","slug":"fees-you-should-be-aware-of-while-purchasing-your-home","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/fees-you-should-be-aware-of-while-purchasing-your-home\/","title":{"rendered":"Fees You Should be Aware of While Purchasing Your Home"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p><span style=\"font-weight: 400;\">When buying a house, most people tend to focus on the cost of the home and interest rates they are paying on a loan. Understanding the lending process is critical, but there are additional costs to consider while purchasing a home. Before you start asking <\/span><a href=\"https:\/\/onqfinancial.com\/how-long-does-it-take-to-buy-a-house\/\"><span style=\"font-weight: 400;\">how long does it take to buy a house<\/span><\/a><span style=\"font-weight: 400;\">, here\u2019s a list of the commonest fees you should know about. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Private Mortgage Insurance<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">You might be required to buy <\/span><a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-private-mortgage-insurance-en-122\/\"><span style=\"font-weight: 400;\">Private Mortgage Insurance (PMI)<\/span><\/a><span style=\"font-weight: 400;\"> if your down payment is less than 20 percent. PMI is a private mortgage insurance firm product that protects lenders against loss in case borrowers default. You can pay upfront PMI premium at closing or monthly PMI premiums. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Title Insurance<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">This is an insurance product that\u2019s designed to protect lenders in case of title problems of a home you are purchasing. <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/t\/title_insurance.asp\"><span style=\"font-weight: 400;\">Title insurance<\/span><\/a><span style=\"font-weight: 400;\"> is usually rolled into the closing costs and may be financed into a loan. While it\u2019s optional, title insurance is important in case you\u2019re worried about title issues that may affect your ability to keep a home after the fact. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Escrow Fees<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">During closing, the escrow fees is the amount of money held as both buyer and seller finalize their agreement. Plus, some of your monthly mortgage payment might go into escrow to pay property taxes and insurance. Overall, you are prepaying some of the homeowner\u2019s insurance and tax costs for a home before you actually own it. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Credit Report Fees<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Before you can secure a loan, lenders will need a verified credit report. The fee towards this report is usually small and lenders ask for it once credit checking is done. Some lenders add the fees to the closing total cost. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Survey Fee<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">The survey map shows the property\u2019s precise legal boundaries as well as other details. If you cannot obtain an existing survey, you will need a new one to determine the boundaries of a property. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Property Taxes<\/span><\/h1>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" class=\"alignnone size-full wp-image-16860\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/05\/rental-tax-image.jpg\" alt=\"is rent protection insurance tax deductible\" width=\"600\" height=\"315\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">In some situations, you might owe some amount of <\/span><a href=\"https:\/\/www.investopedia.com\/articles\/tax\/09\/calculate-property-tax.asp\"><span style=\"font-weight: 400;\">property taxes<\/span><\/a><span style=\"font-weight: 400;\"> if a seller has already paid taxes for a period you will be the owner. In addition, you might have sewer or water municipal taxes to take care of. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Homeowner\u2019s Insurance<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Insurance is a requirement when borrowing money for purchasing a home, and you can\u2019t avoid it. The homeowner\u2019s insurance policy is a combination of personal liability and hazard insurance products for the dwelling and contents within. In most cases, you\u2019ll be required to purchase this policy before you close on a home. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">You will be required to pay for the first year\u2019s premiums to an insurance company, showing that you already have insurance in place before closing. Afterward, you may escrow annual premiums into the mortgage payment. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Appraisal Fees<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.investopedia.com\/articles\/pf\/12\/home-appraisals.asp\"><span style=\"font-weight: 400;\">appraisal<\/span><\/a><span style=\"font-weight: 400;\"> is done to establish the home\u2019s current fair market value for tax. An appraisal is the written justification for the price you are paying for a home, mostly based on comparable sales within the same neighborhood. A lender requires an appraisal to ensure that the home is worth the amount you are seeking to borrow. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Origination Fees<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.thebalance.com\/loan-origination-fees-and-how-to-avoid-them-4156731\"><span style=\"font-weight: 400;\">origination fee<\/span><\/a><span style=\"font-weight: 400;\"> is usually paid to your lender or bank for creating the home loan. Also known as point fee, it is usually about 1 percent of the loan and is often added to the total loan cost. Like escrow payments for property taxes or insurance, the addition might increase monthly mortgage payments. <\/span><\/p>\n<h1><span style=\"font-weight: 400;\">Conclusion<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Some fees are required to be paid up front, while others are rolled together into your home loan. It is critical that you understand the difference and know what you are expected to be paying out of pocket. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When buying a house, most people tend to focus on the cost of the home and interest rates they are paying on a loan. Understanding the lending process is critical, but there are additional costs to consider while purchasing a<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/fees-you-should-be-aware-of-while-purchasing-your-home\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":17010,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[7,16],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/06\/sbi-home-loan_625x300_51460047199.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/fees_you_should_be_aware_of_while_purchasing_your_home","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/17009"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=17009"}],"version-history":[{"count":1,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/17009\/revisions"}],"predecessor-version":[{"id":17011,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/17009\/revisions\/17011"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/17010"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=17009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=17009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=17009"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=17009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}