Eight  Hidden Costs of Buying a Home
With your focus on building your down payment fund and figuring out what your mortgage payment will be, it’s easy to overlook some of the smaller fees that come along with a home purchase. Here are eight and what they could cost you.
 Home Inspection
A home inspection helps protect you from purchasing a home that could be a lemon. Inspectors will look for signs of structural issues, mold, and leaks; assess the condition of the roof, gutters, water heater, heating and cooling system; and more. Inspections cost between $300 and $500, and whether or not you end up purchasing the property, you still need to pay this fee.
 Appraisal Fee
This appraisal report goes to your lender to assure it that the property is worth what you’re paying for it. An appraisal can take about 2 hours and costs between $200 and $425.
 Application Fees
Before ever approving you for a loan, the lender is going to run your credit report and charge you an application fee, often lumping the credit report fee in with the application fee. This can run $75 to $300. Be sure to ask for a breakdown of the application fees to understand all costs.
 Title Services
These fees cover a title search of the public records for the property you’re buying, notary fees for the person witnessing your signature on documents, government filing fees, and more. These can cost between $150 and $400, and it’s important to get a line item for each cost.
 Lender’s Origination Fees
Your lender will charge you this upfront fee for making the mortgage loan. This includes processing the loan application, underwriting the loan (researching whether to approve you), and funding the loan. These fees are quoted as a percentage of the total loan you’re taking out and generally range between 0.5 to 1.5%.
 Survey Costs
This report ($150 to $400) confirms the property’s boundaries, outlining its major features and dimensions.
 Private Mortgage Insurance (PMI)
When you put down less than 20% on your new home, the lender requires that you purchase Private Mortgage Insurance, which is a policy that protects the lender from losing money if you end up in foreclosure. PMI rates can vary from 0.3% to 1.5% of your original loan amount annually.
 Tax Service Fee
This is the cost (about $50) to ensure that all property tax payments are up to date and that the payments you make are appropriately credited to the right home.
Source: House Logic
John Castelli, Realtor
Keller Williams Realty