Get Acquainted with These 3 Mortgage Fees
From mortgages to title changes, the process of buying a house typically comes with a lot of paperwork to navigate as well as unexpected fees. Learn all about these three common mortgage fees and what they will mean for you at closing so you can finish your home purchase without a hitch!
An appraisal fee covers the cost of having a professional third-party appraiser evaluate a house to estimate the its market value. The cost is usually around $300 to $500, but unique properties, large houses, and remote locations can typically cost more to appraise. Mortgage lenders typically require an appraisal in order to verify that the house is worth more than the amount of your loan so that they can recover their money unless there’s a significant drop in home prices.
Home Inspection Fee
According to the U.S. Department of Housing and Urban Development, a typical home inspection costs $300 to $500 depending on the size of the house, where it’s located, and what you want inspected. But in most cases, it’s well worth the cost. Simply put, home inspections are a way to vet a home before you buy it, making buyers aware of any property problems. Armed with that knowledge, buyers can insist that the seller fix certain issues before closing, renegotiate the price to reflect future repairs, or walk away without losing their earnest money.
When buying a home, the title will need to be transferred from the seller to the buyer which can result in a variety of title-related fees. The buyer may need to pay a title search fee to the title company for doing a search of the property’s records to ensure no one else has a claim to the property. The buyer may also be required to pay the local recording office to record the real estate purchase so that it becomes a matter of public record. Additionally, lenders may require you to purchase lender’s title insurance, which protects the amount they lend. You may also want to buy owner’s title insurance, which is meant to help protect your financial investment in the home.
There are additional mortgage fees that you might come across in your home buying journey. Talk to an experienced loan officer to learn more and get the details upfront!
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