When buying a home, many prospective buyers focus on the listing price and interest rate. Unfortunately, the costs associated with a property purchase extend well beyond the lending process. Should you be unaware of or ill-prepared to handle these fees, you may come away from the experience feeling defeated. If you are considering buying a home in the Greater Saint Paul, Minnesota area, top realtor Justyna Johnson – Edina Realty will provide the advice and support you need to emerge from the process unscathed.

Read on to learn about a few of the hidden costs associated with buying a home:

• Appraisal: Most buyers need to get an appraisal—an estimated value of the property they are hoping to purchase—before getting a mortgage. The appraisal provides lenders the opportunity to determine your loan-to-value ratio.
• Home Inspection: Prior to closing on a home, your lender may require you to complete a home inspection, which can often run several hundred dollars. By working with a top realtor, you can anticipate hefty costs like these in advance.
• Title Insurance: This insurance covers the buyer in the unlikely case the seller did not own the property, or if the information on the title is false.
• Escrow: An escrow account is used to hold money during the closing process while the seller and buyer finalize the agreement. You may have a portion of your monthly mortgage payment deposited into escrow to cover insurance and property taxes.
• Survey Costs: In some cases, the lender may require a professional survey of the property to determine its legal boundaries.
• Mold or Pest Inspection: Though typically not required when purchasing a brand-new home, a mold or pest inspection may be necessary for older properties.
• Taxes: The tax amount you pay will ultimately depend on the area you are moving to. However, it is worth noting that buyers often pay two months’ worth of city and county property taxes at closing.

On average, closing costs will run between 2% and 5% of your total home purchase amount. However, it’s important to shop around and negotiate lower fees if at all possible. If you have additional questions with regard to buying a home, contact Justyna Johnson – Edina Realty today. As a Zillow 5-Star Premier Agent, Justyna Johnson has been featured on HGTV’s “House Hunters” and endorsed by Glenn Beck as a trusted real estate agent. Call this top realtor’s office at (651) 501-2345 or visit her online to learn about her multiple listing service.