5 Closing Costs You Won’t Want to Forget

1. Home Inspection Fee

When you’re buying a home, closing costs can add up. One of the fees you may have to pay is for a home inspection. A home inspection fee is typically charged by the home inspector for their time and effort in inspecting the property. The cost of a home inspection can vary depending on the size and type of property being inspected. However, you can expect to pay around $200-$500 for a typical home inspection.

While this may seem like a lot of money, it’s important to remember that a home inspection can help to uncover potential problems with the property that could end up costing you thousands of dollars to fix. For example, an inspector may find that the roof needs to be replaced. Knowing this in advance allows you to negotiate with the seller to have them cover the cost of the repair or provide a credit at closing. In the end, paying for a home inspection can save you a lot of money and help to ensure that you’re making a wise investment in your new home.

2. Title Search Fee

When you’re buying a home, there are a lot of closing costs to keep track of. One of these is the title search fee. This fee covers the cost of searching for any liens or encumbrances on the property. The title search is important to make sure that the property is clear and free of any debts or obligations that could be transferred to the new owner. The fee for this service can vary depending on the specific property and the state in which it’s located. In general, though, you can expect to pay a few hundred dollars for a title search. This is just one of many closing costs that you’ll need to budget for when buying a home, so be sure to factor it into your overall plan.

3. Loan Application Fee

Loan application fees are closing costs charged by lenders to cover the cost of processing a loan application. These fees can vary depending on the type of loan and the lender, but they typically range from $100 to $500. In some cases, the loan application fee may be refunded if the loan is not approved. When shopping for a loan, it’s important to ask about any application fees so that you can compare the total costs of each loan. In general, you should try to get a loan with the lowest possible closing costs.

4. Appraisal Fee

When closing on a home, there are many fees and costs that need to be paid to finalize the sale. One of these fees is an appraisal fee, which is charged by the lender to have the property appraised. This helps to protect the lender’s investment by ensuring that the property is worth at least as much as the loan amount. Appraisal fees can vary depending on the lender, but they are typically between $300 and $500. As such, they are an important part of the closing costs that need to be considered when buying a home.

5. Credit Report Fee

When you’re closing on a new home, there are a lot of fees to account for. One of the most important (and often overlooked) fees is the credit report fee. This fee covers the cost of ordering your credit report, which is required by lenders to approve your loan. The credit report fee is typically around $30, but it can vary depending on the lender and the state where you live. If you’re not sure how much your credit report fee will be, be sure to ask your lender before you close on your new home.

Closing costs are an important part of the home buying process, but they can often be forgotten in all the excitement. From title insurance to home inspections, there are several fees you’ll need to account for when purchasing a new property. If you’re ready to buy your dream home, make sure you factor these costs into your budget.

Sudarsan Chakraborty
Sudarsan Chakraborty
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