Types Of Fees And Costs You Will Pay To Close On Your House
When you buy a house, you will have a lot of different expenses to pay for besides the purchase price of the house. If you are new to buying a house, you might not have a clue about the types of fees you will have to pay, but this is a good thing to know. Here are some of the fees you should expect to pay if you are buying a house.
Fees your lender charges
To process your loan, your lender will charge fees, and there is not a lot you can do about this. All lenders charge fees; however, you could compare the fee structure from several different lenders to see if there is a way to save some money by choosing a certain lender. One typical fee is called a loan origination fee, and all lenders charge this type of fee.
A second type of fee you will pay when getting a loan is a fee for title insurance. There are times when sellers pay this fee, but you should assume that you will be responsible for this. Buying title insurance is not something that is optional. In other words, you need a title insurance policy. This policy will protect the title of your home if there are problems with the title that the title company did not find out when performing research on it.
Survey and appraisal
Your lender will also require getting the house surveyed and appraised, and you will have to pay the fees for both of these things. Your lender will charge a certain fee for these services, but your lender may allow you to choose different companies to perform the services. If you look around and find companies that will perform the services for lower prices, you could hire them to do the work, and this would result in paying less for the closing costs on your loan.
One other type of fee you will encounter during the home-buying process is for inspections. Some of the inspections you will get will be required by your lender, but there are also optional types of inspections you can choose to get. Some people will skip the inspections when buying a house, simply to save money, but this is not always a good idea. Getting the proper inspections will help you learn more about the house and will help you understand the condition of the home a little bit more.
If you have questions about the expenses you will encounter when looking at homes for sale, ask your local real estate agent.