Additional Real Estate Expenses

When you are saving for your down payment, you will also need to save more money for the following expenses:

Home Inspections
Professional inspections are a crucial element in the home buying process. Depending on the age and type of real estate property, inspections usually cost between $300-$800 so make sure to factor this into your budget. Inspections are definitely money well spent as they could uncover some very serious issues with the property.

Closing Costs
When it's time to make the final deal, you will receive a good faith estimate from your lender, but sometimes, although rare, the closing cost could be higher. Make sure to give yourself enough wiggle room for these possible additional costs.

Appraisal Costs
Depending on the location in the country where you will be purchasing real estate, you will often need to pay an appraisal fee when you are going through the loan approval process. Oftentimes, this fee costs anywhere from $200-$1000.

HOA Fees
Factor in Home Owner Association fees if you are buying a condominium, townhouse or home in a subdivision. They can run anywhere from $150-$1000 depending on the amenities and services offered for upkeep of the common areas.

Moving Fees
Remember to factor in the cost to actually do the moving. You will probably need to rent a moving fan and purchase boxes. Moving trucks and vans can range anywhere from $20-$40/day plus money per mile. Don't forget moving tends to mean a lot of garbage. Plan on spending another $20 for carting all your excess trash to the landfill.

Household Extras
Moving into a new home usually means buying some of the essentials. If this is your first home, remember you will probably need to buy some of the basics like toasters, trash cans, vacuums, etc... If your new real estate property has a lawn, you will probably also need a lawn mower.

Remember these important extra costs when you are planning on buying your new home. Make sure you have enough cash for these added extra expenses in addition to your down payment!

Jennifer Van Scoy is the Director of Portal Marketing for Saratoga.com, a regional local online guide to Saratoga Springs NY including restaurants, hotels, events, movies, things to do and Saratoga real estate

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