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What does your new home really cost?

On Behalf of | May 11, 2022 | Real Estate Law

As a first-time buyer, you probably know that buying a home will be expensive, but do you realize how expensive? It is crucial you understand the full costs before signing to buy.

Here are some of the things you need to calculate:

The fees associated with buying

Did you know you need to buy title insurance twice? Once for you and once for the lender who gives you the mortgage.

Do you understand the various fees you will need to pay out to those involved in the purchase process, from agents to attorneys to legal fees and taxes?

Is your mortgage viable?

Many people try to get the biggest mortgage they can, and sometimes banks lend more than they should. That is what caused the 2008 recession. It is easy to do if you are not financially savvy. Understanding how changes in interest rates could affect your payments is crucial. So is understanding any hidden fees and the total amount you will pay back over the lifetime of the mortgage. As tempting as it can be to retain some of your deposit to spend on redecoration, typically, it is far better to put down as much as possible to reduce the total you will pay.

Houses cost a lot to run and maintain

A nice house is pointless if you cannot afford the energy to heat it. Likewise, you need to check how much the property taxes will be. Sometimes, living in one neighborhood can be much cheaper than in another.

There is a lot to take on board when purchasing your first home. Getting legal help will be crucial to ensure you do not make costly mistakes.