Additional Homebuyer Costs you need to be Aware of

Don’t be caught off guard when it comes to buying a home. There can be several additional costs that you weren't ready for. Knowing about them in the early planning stages can help you to budget for them. What you will pay depends on where you live and the cost of the home you purchase.

Stamp Duty

Any time you buy a home, you will be charged a Stamp Duty. It can be sizeable so keep that in mind. The more your home costs, the higher this is going to be. For a $500,000 home, it can be as much as $25,000! There are Stamp Duty calculators you can use online free of charge. They can help you figure out what you may pay. Just enter your state, territory, and the purchase price to get the figure.

Legal Research and Verification

It is important for the owner of any property to own it free and clear before it is sold to someone else. If they payoff the person holding the mortgage but they also have other liens, it can’t be transferred to someone else. A professional in the legal realm has to do this research and to verify there aren’t any other outstanding debts the home is tied to.

Insurance

Any time you finance a home, you must have insurance to cover the remaining balance due on that loan. This is required by the lender to eliminate their risk of a complete loss if the property is damaged or destroyed. Plus, it is recommended to have insurance coverage for your personal belongings as well.

Utility Deposits and Transfers

You may have to pay for utility hook-up fees, deposits, and transfers. This includes money for the water, power, gas, and internet. If you have a landline, there may be a cost there too. What you will incur depends on where you have services.