13 Extra Costs to be Aware of Before Buying a Home

Whether you’re looking to buy your first home, or trading up to a larger one, there are many costs – on top of the purchase price – that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you’re not informed and prepared.

Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation, however it’s better to know about them ahead of time so you can bud-get properly.
Remember, buying a home is a maj
or milestone. Whether it’s your first, second or tenth home, there are many important details to address, during the process. The last thing you need are unbudgeted financial obligations cropping up hours before you take possession of your new home.
Read through the following checklist to make sure you’re budgeting properly for your next move.

1. Appraisal Fee

Your lending institution may request an appraisal of the property, which would be your responsibility to pay for. Appraisals can vary in price from approximately $175 -$ 300.

2. Property Taxes

Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If your property taxes are not added to your monthly payments, your lending institution may require annual proof that your taxes have been paid.

3. Survey Fee

When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $190 – $1,000.

4. Property Insurance

Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan. Beware! Some homes may not be insurable. Make sure you have an insurability clause in your purchase contract.

5. Service Charges

Any new utility that services your hook up, such as telephone or cable, may require an installation fee.

6. Escrow and Document Preparation Fees

Escrow fees are split between the buyer and the seller in Colorado. However, additional fees will be charged for the buyer’s mortgage closing. This can include first and second mortgages. In addition to the “Doc Prep” fees charged by the lender, some lenders will e mail the loan documents and therefore the escrow or title company may charge a electric to paper fee.

7. Mortgage Loan Insurance Fee

Depending upon the equity in your home, some mortgages require mortgage loan insurance. This type of insurance will cost you between 0.5% -3.5% of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.

8. Mortgage Brokers Fee

A mortgage broker is entitled to charge you a fee in order to source a lender and organize the financing. However, it pays to shop around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.

9. Moving Costs

The cost for a professional mover can cost you in the range of:

o$50-$100/hour for a van and 3 movers, and

o10-20% higher during peak demand seasons.

10. Maintenance or HOA Fees

Condos charge monthly fees for common area maintenance such as grounds keeping and carpet cleaning in hallways. Costs will vary depending on the building.

11. Water Quality and Quality Certification

If the home you purchased is serviced by a well, you should consider having your water checked by your local experts. Depending upon where you live, determines whether or not a fee is charged, to certify the quantity and quality of the water.

12. Local Improvements

If the town, city or county you live in has made local improvements (such as the addition of sewers or sidewalks), this could impact a property’s taxes by hundreds of dollars.

13. Metropolitan or Special Tax Districts

This is a unique tax district set up by the developer to finance all aspects of the physical infrastructure such as streets, sewer and even recreation centers or golf courses. The developer only has to put up a small percentage of monies for these costs and the rest are floated with bonds and added to the homeowners tax bills until paid off. The arrangement can work nicely when there are plenty of homebuyers to pick up the tax bill. But, in a down market, watch out…you could end up holding the bag when there are not enough buyers to fund the bonds.

Are you looking for Real Estate in Denver Colorado? Visit http://www.realtyoasis.com to find current information and resources about home sales in Colorado. Realty Oasis Metro Brokers offers the top realty expertise and resources to help you find your dream home. Also check out our current home listings in Colorado at http://www.realtyoasis.com/listings/residential.asp [http://www.realtyoasis.com/listings/residential.aspx]. We have extensive home listings in Parker, Highlands Ranch, Aurora, Centennial and all cities in Colorado’s Front Range.

Top Activities to Enjoy at Englewood Real Estate Colorado

Lakes are best places to have total relaxation. Fishing is one of the activities that can be enjoyed in the lakes. For some people, they consider fishing as a boring and time-consuming activity. But once you try this, it can be an exciting sport and at the same time can boost up your creativity. Patience and perseverance are needed to make this enjoyable. As the saying goes that practice makes perfect, this goes true with fishing whether it’s a hobby or sport. If you do this, you will know the secret techniques to catch fish. Fishing is very demanding yet a fulfilling activity. Constant practice will help you become an expert in this kind of recreation or sport. This is an ideal sport for all ages; young and old can engage into this sport or hobby as long as you’re able and willing to learn. For those who are looking the best location for their fishing escapades in Englewood Colorado, you can check one of the spots for fishing at Belisle Reservoir.

Apart from being a fishing spot, Englewood is also known as a Home Rule Municipality. It is located in the areas of Arapahoe County in the state of Colorado. According to statistics, the city of Englewood has approximately a total of 32,532 population residing in the area. It is also a part of the territory of Denver-Aurora Metropolitan Area.

This lovely city of Englewood provides endless recreational opportunities which the whole family can enjoy. Recreation centers, parks and aquatic facilities, golf course, parks and open spaces are just among the places you can visit. Their recreation centers give full service community that have full size gymnasium, an indoor track, a 25-meter 8-lane swimming pool, a cardiovascular area, aerobic fitness training, sauna, two lighted sand volleyball courts and many other amenities. Discounted fees are availed by the residents in this area. If you’re considering of buying a property in Englewood Colorado, a real estate agent like Englewood real estate can be of great service to you. You can also browse photos of available houses at Englewood homes for sale.

Lots of activities can be done in this beautiful place. Since Englewood is also close to the locations of two large reservoirs, water sports like sailing, boating, water skiing, and swimming are also enjoyed. In addition, the place has areas designated for recreation centers such as skateboard park and other ideal venues for athletic activities where all the residents can go and enjoy. The area is also is near to the Rocky Mountains where outdoor recreational activities like camping, hiking and skiing can be experienced.

You will really fall in love with Englewood once you step in this lovely place. Aside from offering a perfect fishing location for lake lovers, they also offer quality restaurants for a satisfying dining experience with families and friends. This place has a lot to offer whether you are considering it as fishing destination, weekend adventure and a place for outdoor recreational activities. This is what you call home.

Illinois New Home Prices Near Historic Lows

Back in 2005, the new construction scene in the Fox Valley was looking bright. New home starts were riding an all-time high and new subdivisions were popping up everywhere to provide for the seemingly endless stream of buyers. In early 2006 it all came crashing down. Buyers disappeared like fog in the morning and builders were left to deal with half-finished communities, a glut of inventory and a ton of unfulfilled expectations. Since then, builders have had to respond and deal with the housing crisis. This has created some great deals for home buyers but there have also been some casualties.

In October 2007, the real estate world was shocked with the announcement of bankruptcy filed by Warrenville-based Neumann Homes. One of the area’s largest builders, Neumann Homes had constructed 15 subdivisions including the popular Tanner Trails subdivision in North Aurora. Due to lagging home sales in our area and even worse conditions in Michigan and Florida, two other areas where the builder had developments, the builder was forced to seek bankruptcy protection.

Later, in April of 2008, a second large Chicagoland builder – Kimball Hill Homes – announced that it was also seeking Chapter 11 bankruptcy protection in order to restructure debt. The company is continuing normal business operations for the time being but it’s unknown how this will affect new subdivisions such as Settler’s Ridge in Sugar Grove in the future.

What buyers are finding in today’s market are builders that are stretched as thin as possible on profit margins. This, right now, represents a high mark in new construction affordability. Over the last year, builders have been falling over themselves to offer incentives enough to spur buyers into action. Right now represents perhaps the best time over the last 50 years for home buyers to get into a new home. According to many experts, the housing market, especially in the new construction arena, has hit bottom. While we might not recover quickly, we’re not expected to get much worse. This means that if you are in the position to buy, now is your chance to get in on historic low prices.

Buyers with homes to sell must make sure that their homes are priced aggressively right from the start. If you must put down a deposit on a new home before yours is sold, you need to be aggressive in selling your home right from the beginning. Contact your local real estate agent for information on how to price your home correctly in today’s market. If you are not aggressive enough with your home pricing, you run the risk of not getting your home sold before your new home is built. Some builders will offer a home-sale contingency that allows buyers to get out of the deal and get their deposit back if their home doesn’t sell, but many builders are also not allowing this due to the bad market conditions.