Costs Of Buying Your Home
Some borrowers tend to forget that mortgages entail other related expenses and fees and expenses that can cost an extra five to six percent of the property price. However, you must pay for these fees to avoid problems in the long run.
Some lenders charge a home loan application fee and its rate varies from loan to loan. This fee covers property title checks, legal contracts and credit checks. During promotional periods, lenders waive the application fee to attract more customers.
Other mortgage fees include an establishment fee, a property valuation fee to determine land value and improvements that can be done, a mortgage registration fee, a stamp duty fee and a lender mortgage insurance if you do not have 15% downpayment.
A borrower must also satisfy other property fees such as building inspection fees, transfer of registration fee, utility costs such as water and electricity, legal processing fees, council rates for garbage collection and other services.
Other fees that must be sustained are council rates for garbage collection and other services, body corporate fees and maintenance costs. There are some situations wherein not all of these fees are required but you must have the finances to shoulder for it.
