Do consider your budget. It is normal to ask how much you can afford in buying a house. Buying a house can be costly, which if you do not budget for can come as a surprise (or a shock!). Here is the list of costs of buying a house that you should be aware and prepared for:
Deposit or downpayment - the downpayment ranges anywhere from 3.5% to 20% of the purchase price. Generally, the higher the downpayment, the lower the interest rate and monthly mortgage payment.
Appraisal Costs - This is the cost paid to a professional home appraiser to appraise the home's value. This is needed for the lender to approve the loan.
Credit Report Costs - Credit report is simply a rundown of your payment history, listing your accounts, balances and payment behavior for each.
Document Preparation Costs - It is used to pay attorney's fees, broker or lender to cover the preparation of the required documents for the loan.
Escrow fees - This fee is paid to a third party who accepts monies from the buyer and a grant deed from the seller until such time that the buyers and sellers will settle on a final price and set of terms.
Next Topic: Continuation of Cost of Buying a House
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