A Long List Of Fees For Services
At the end of the day there is a very strong argument that buying your own home is an excellent value proposition. Unfortunately, getting to that point is a very formal, legalistic process that requires hundreds or even thousands of pages of documentation and it might seem like a signature on every page.
Likewise, when you buy your next home it will seem like there are too many fees and expenses to shake a stick at. That is normal and to be expected because the transfer of land and improvements, i.e. selling real estate is a complex and high value process.
When you are buying a home you might be forgiven for thinking that you still have a stack of nickel and dime services to pay for that just keep adding up. You will be glad to know that your escrow professionals are there to guide you the process and to ensure that all of the payments go to the right places and the, when the dust settles, the home is yours to enjoy without surprises and hidden costs.
Fees For Finding Things Out
When you are the buyer in a transaction you will have costs and expenses that are mostly due at closing, which means that you give them to the escrow company. The first type of these can be filed under fees for finding things out such as the appraisal, your Tri Merge Credit Report, flood zone determination and a fee to courier your sensitive documents between different professional services and on to the escrow company when it all finally comes together.
Fees For Professionals
The next could be classified as fees for professionals. These are the attorney fees for you and for the lender. You will pay for the title company title search or exam fee to make certain that nobody can come forward in the future with a claim to your home.
If the home is part of a common interest development such as a condominium complex, there will be a homeowners association. That means you will also need to pay your apportioned part of the HOA payment for the part of the period you take over.
Let’s not forget the pest inspection and survey fee! This makes the bank happy now and it will definitely not make you unhappy in the future. Nobody wins if something like termites turn up in the structure of your home after you have committed to ownership.
Fees To The Powers That Be
When you close there will be institutions that expect to receive their due. The first and foremost of course is the government, whose fees include prepaid property tax, transfer taxes and recording fees. You will pay the policy title insurance for yourself and for your lender along with any insurance for being in a flood zone, if it is determined to be required.
Your lender will require the release of prepaid interest and loan discount points as well as underwriting and processing fees. There will be a closing fee that goes to the escrow company for handling all of the distribution and confirmations before the release of the property to you.
All Part Of The Process
All these things certainly do add up and they can be very daunting to see listed as itemized charges. The thing to remember is that you have professionals there to help you, to make sure the process goes smoothly from start to finish. Don’t hesitate to question your realtor, your lender or your escrow company about anything you do not understand. Even with all of these fees, you will be so glad once you have the keys in your hand that it will all fade into insignificance, once the process of purchasing your own home is done.