You don’t only have to worry about having a down payment put together when it comes to buying a house, there can be many costs associated with the process that you may be unaware of. Here are a few things to consider before diving in, and a few reasons to have a little extra padding in your savings account:
Moving is loosely considered to be part of your closing costs, although it does not get a fixed number because you can move fairly cheaply if you do all the back-breaking work yourself. If, however, you are planning on hiring a moving company, you’ll want to plan financially for that as part of the cost of buying a home.
Purchasing a home requires the professional services of a lawyer and this is by far the largest additional expense in the cost of buying a home. Lawyer’s fees can run anywhere from $1000-$5000 or more, depending on the purchase price of the home. Since all lawyers bill a little differently for real estate services, you may be able to find a great deal. You won’t really need your lawyer’s assistance until the closing date of the purchase, but most will require a deposit or retainer for their services before then.
When you buy a home you want to know that it’s safe and that the façade of it isn’t masking a whole bunch of other underlying problems that may cost you a fortune later on. A home inspector will usually cost you around $500, depending on the inspector. They will tell you if the home you are buying simply needs some cosmetic work, or has some major and expensive issues that need to be addressed. Finding this out can either give you ammo to negotiate the purchase price further, or (assuming you put conditions on the sale) give you the right to walk away from the purchase altogether. This is a necessary and worthwhile cost of buying a home.