Potential Additional Costs

There's a certain sense of security that comes with owning your own home; not to mention the many other rewards, ranging from personal freedom to tax benefits. Suddenly you're part of a very special family called "homeowners."

You may already have an idea of the many responsibilities that come with home ownership – like paying a mortgage and keeping up with home maintenance. But you should also know there are some additional costs beyond the down payment, the mortgage and home maintenance. Some of these expenses are optional; for example, how much you spend on furnishings and remodeling is entirely up to you. Other expenses are set, but fairly routine for all homeowners.

Anticipating (and planning for) these potential additional costs is key. Your Real Living agent or Real Living home mortgage consultant can provide you with insight and counsel on most of your home finance issues.

Here's a list of what you might expect to spend on additional costs. Keep in mind that some of these costs can be rolled into your mortgage loan; others will need to come out-of-pocket.

• Appraisal: An evaluation to determine the price for which a property would sell in the current marketplace. Approximate cost: $150-$300.
• Attorney fees: Retaining an attorney in the purchase of real estate for taking care of legal details such as title and prorated taxes is optional. Approximate cost: $300-$800.
• Fire and hazard insurance: Protection against damage caused by fire, wind or other common hazards. Approximate cost: Most lenders require borrowers to carry hazard insurance in an amount at least equal to the mortgage. Contact your insurance agent for pricing but policies can begin for as little as $300.
• Home inspection: Usually conducted by a qualified home inspector, it is a comprehensive evaluation (including written report) of the condition of a home. Approximate cost: $150-$300.
• Mortgage loan application: The necessary paperwork to secure a mortgage loan. Approximate cost: $25.
• Moving expenses: Costs associated with moving personal property from one residence to another. Approximate cost: Varies from a few dollars to thousands of dollars depending on amount of household goods and distance. Ask your agent to recommend a professional mover whom you can contact for advice.
• Transfer taxes: Taxes levied on the transfer of property or on real estate loans by state and/or local jurisdiction. Approximate cost: Varies by state. Contact an attorney for details.